03-11-2021, 10:39 PM
(03-11-2021, 10:30 PM)fenders53 Wrote: That sounds rational and the job market should recover. I think Powell will have his hands full but the market will learn to adjust to modestly higher rates. That needs to happen IMO. I don't desire the zero rate solution longterm.
I just want the stock market to rise 12% a year forever. : ) The fact that we bounced and broke out halfway through a pandemic is the most amazing market feat I will likely ever witness.
Stagflation (rising rates and falling employment) is problematic for markets. The 1970s were unkind.
Ordinary inflation is fine. Equities inflate along with other assets.
Just like COVID saw the biggest job losses in history over a very short time span, there will probably be some staggering job gains in the coming months, as reopening happens quickly across the U.S.
Any pressure from 10yr yields is likely to be outweighed by GDP growth numbers this country hasn’t seen in decades, triggered by a rapid return to normal economic activity.
I wouldn’t want to be holding a ton of cash (at least not dollars) at the moment.