RE: Central Bankers Dilemma4 Mar 2021 12:08
The markets (elite) are trying to create trading points to short and sell. Rumours, manipulations all happened since the 20s.
The central bank dilemma is never that coordinated or simple as different economies require different solutions at different times. Even Sunak is concerned on interest rate hikes could cost £27bn per1bp. Central banks have already indicated that rates will stay low, no matter what the manipulaters do at the long end. Governments cannot service debt at higher rates. Individuals cannot bear any rise in mortgage rates. Demand is ropey enough without killing it completely.
Raising interest rates to control inflation will not work. The reopening is going to have many (who can afford to ) blowing their forced savings & paying over the odds (holidays, services, treats) and supply in demand will raise prices. Unavoidable.
Demand for oil & oil price rises will feed into the inflation, especially at these levels. Oil is trending one way. Central banks will not risk recovery by raising rates. They have said so.
Stock will grind higher this year, any sharp corrections will be bought. Fear not, grab the popcorn and GLA.
I have learnt never to time the markets, take a position - entry and exit - and follow your own plan. Up days, down days, improve positions and average down. Step out when necessary and wait until the price comes back to your entry - exit plans.
Inflation will be tolerated short term at higher levels. The moves on the bond yield 30 year 10 year are spooking investors in sky high valuation tech stocks. I feel that the correction, in tech will come soon, Nasdaq 10k - 13k on let's face it hot air! This will prompt a further rotation into recovery plays and those left behind. As for Bitcoin, when the music stops selling to cover the leveraged retail binges will give such great buying opportunities. Patience is the key.
GLA
DYOR
Sign In
Follow the stocks
