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+--- Thread: DGI and rising interest rates (/showthread.php?tid=1398)
DGI and rising interest rates - Robandcindy2 - 11-10-2015
Unless I missed it I'm surprised this isn't a hot topic. Lots of chatter both pro and con regarding the contemplated Fed rate hike.
I've always thought it was needed for two reasons. First, just to get the financial world off the fence ("is it going to happen of isn't it?")
And second, to give the Fed a little ammo to fight disasters if they need it.
But getting back to us....
Do we think there will be an exodus to bonds from dividend stocks? I personally wouldn't. Why lose the stock appreciation for bond safety?
On another thread/site some debated the effect on REITs and other sectors. Any thoughts?
Are you making any adjustments?
Like I always used to say during military exercises, "this too shall pass...like a kidney stone....but it shall pass." :-)
Hope you all have a Happy Veterans Day tomorrow...and a big thank you to our Vets and their families.
Cheers,
Rob
RE: DGI and rising interest rates - Dividend Watcher - 11-11-2015
It's not a hot topic, IMO, because this has been an on again, off again affair for a long time now. If the bond vigilantes were really worried about inflation, I think they would've run up rates ahead of the Fed a long time ago.
I too think it's time for a small bump in the Fed funds rates. If anything, to take the punch bowl away from the banks and signal to businesses that they need to start marshalling their resources better and not depend on free money. That being said, I wouldn't expect more than a 25 basis point bump for starters which really isn't going to hurt except for those that are overextended and/or relying on short-term financing that they keep rolling over.
REITs and utes may move on the bump but it will be a knee-jerk reaction.
Not making any adjustments to my portfolios. My limit orders have been in since mid-September. Just need Mr. Market to cooperate.
RE: DGI and rising interest rates - Robandcindy2 - 11-12-2015
http://seekingalpha.com/article/3681966-dividend-growth-stocks-instead-of-bonds-for-retirement