Me thinks .31c is the new .27c floor. Good kickback today. Apologies Bob re my rudeness here the other nite. I was polluted with jar. Anyway greetings all from a beach in Mexico. Just passin thru on my travels.....beats the wind and rain of home
Well seeing as stocks have done very well in a weak economy it would be no surprise if now they stagnated for a while. With no qe stocks will eventually have to go back to depending on fundamentals and growth to drive price. There's a fair chance stocks in the US might not have moved much by this time next year. As for interest rates, the US may be caught between a rock and a hard place on them. Employment levels are almost back to pre crisis levels so wage growth would be the next step. Higher rates would be needed to keep inflation at bay. However, higher rates will drive the dollar higher which could surpress growth. With every other economic area in trouble there will be a point when too strong a dollar becomes a problem. Its going to be a fine line on the call when to raise rates. There is scope though.. A 2% rate would be the aim but in baby steps. For the US to get there they need others to strengthen as well. It could be a very slow process unless we see cheap oil boosting growth eventually. For the US its still better to be facing this from a position of strength rather than starting from where Europe is.
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