Big time sale on Stocks going on.

**Adrenaline_6** · 05-10-22, 18:38

Diamond hands....diamond hands. We haven't hit the bottom yet. The Fed interest rates follows the 2 year bond and its hasn't caught up yet. It's about to get even uglier.

**teufelhund1918** · 05-11-22, 06:38

I am definitely not of a money/investing mind, but I certainly don't understand what has been holding the stock market up It seems to be totally disconnected from reality, especially with supply and demand issues which seem to be getting worse. Call me a conspiracy theorist, but I still believe that all of what is going on these days is contrived in order to get the "Great Reset" agenda in place. If you break it, you can "build it back better".

**Coal Dragger** · 05-11-22, 07:16

Super cheap money is what was propping up the stock market since 2010 onwards. With interest rates being historically low holding cash or bonds/securities was an unattractive return on investment. So lots of people bought stocks/equities instead, driving up prices for those equities. Plus super cheap money allowed businesses to restructure debt for much much lower interest rates, borrow money for cheap, and generally make their balance sheets more attractive.

A significant rise in interest rates will change all of those equations going forward. A lot of short term traders, house flippers, and others dependent on near term gains are going to be in for a bad time I think. Same for businesses that are significantly over leveraged and consistently need to offer more shares for sale or borrow money to raise capital.

Folks who are sitting on decent cash reserves will be in a great position to make tremendous wealth for themselves with prudent investments in the near future. The same can be said for individuals with retirement accounts who are secure in their jobs and who make enough that inflation doesn’t significantly hamper their ability to invest/save.

Just my uneducated thoughts, it will be a bumpy ride for some, but a tremendous opportunity for those who can work hard and remain self disciplined and resist panic.

**CRAMBONE** · 05-11-22, 11:31

Originally Posted by The_War_Wagon

Buyin', buyin', buyin' - time to be a-buyin' - lotsa gold & silver - yee ha!!!

When do you think the metals will bottom out? I’m getting ready to make my monthly purchase but I’m trying to hold off and see if prices keep falling.

**FromMyColdDeadHand** · 05-11-22, 12:41

Can someone give a rational explanation of what is happening with bitcoin stuff? It should be a good hedge against inflation? Is this an attack on it because Russia is trying to use it outside of the usual banking system? Is it big enough for that?

I've always been a skeptic. I get the concept, but the value is dependent on what someone will give you- like everything else. But it doesn't have any intrinsic value beside scarcity. Sure, an alternative to gov currency- but if govt currency is that bad, and if gold and silver (useful) don't have value, your at brass and lead having value, not some bit coin code.

**Outlander Systems** · 05-11-22, 12:43

**FromMyColdDeadHand** · 05-11-22, 12:46

Originally Posted by Adrenaline_6

Diamond hands....diamond hands. We haven't hit the bottom yet. The Fed interest rates follows the 2 year bond and its hasn't caught up yet. It's about to get even uglier.

People say that the FED controls interest rates, but that isn't quite true, as you point out. Old school the really didn't, but with their new tools, they could do more- but they still have to eventually yield (ha) to the market....