02-16-2015, 04:09 PM
One thing is for sure, the FED won't do anything stupid. Everyone is talking about the rising interest rates etc. but I'm as sure as I can be that when the FED makes their move, it's going to be a tiny one. Meaning the impact on both interest rates and company profits due to cheap money will be very minor. Noticeable, but nothing to be worried about. Then later on, provided they think the economy can handle it, they will continue to bring the interest rates to where they think they should be.
I would be very surprised to see a big decrease in company earnings that resulted from the FED's actions. I still maintain a decent cash position, mainly because I think the current P/E levels are simply too high for a lot of the good companies. If a bigger downward correction comes I think it's more to do with the general economy as well as the inflated share prices rather than the FED.
I would be very surprised to see a big decrease in company earnings that resulted from the FED's actions. I still maintain a decent cash position, mainly because I think the current P/E levels are simply too high for a lot of the good companies. If a bigger downward correction comes I think it's more to do with the general economy as well as the inflated share prices rather than the FED.