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Post by mrbilbobaggins on Jul 25, 2023 0:59:09 GMT
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Post by mnfish on Jul 25, 2023 11:46:15 GMT
The following (from the newsletter) makes sense to me so I have taken some profits in META and AAPL. They are advocating for small caps but I haven't dove in yet as Wells Advisors has them rated Most Unfavorable currently due to the interest rate environment.
"The Fed’s zero-interest rate policy, which has been in play for most of the 15-year period since the Financial Crisis, allowed companies and consumers to access cheap capital and encouraged risk taking."
"These policies dramatically increased investor confidence across the globe to take more risk in US Large Caps in lieu of other markets where organic earnings growth potential was more likely."
"While the Magnificent 7 seemed to have saved the day thus far in 2023, they will have limited fire power going forward."
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Post by Chahta on Jul 25, 2023 12:46:34 GMT
Anyone here encouraged to take risk because of the zero interest rate policy? Just curious about you consumers out there. I for one never gave it a second thought.
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Post by Deleted on Jul 25, 2023 13:24:57 GMT
Anyone here encouraged to take risk because of the zero interest rate policy? Just curious about you consumers out there. I for one never gave it a second thought. Partly yes. I sold low yielding Savings Bonds in 2020 and bought Dividend oriented ETFs. I'd say it was acombination of low interest rates plus a massive decline in stock prices that motivated me to make some changes and increase risk. |
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Post by Chahta on Jul 25, 2023 14:34:18 GMT
I guess I never paid attention because I always owned equities and never knew any different. All equities until 2017, 2 years before retiring when I traded into a bonds allocation.
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Post by mnfish on Jul 25, 2023 19:31:36 GMT
Anyone here encouraged to take risk because of the zero interest rate policy? Just curious about you consumers out there. I for one never gave it a second thought. @chahta You're asking the folks on this board? Most of whom are retired? So, you don't believe that the average consumer or investor or the companies they invest in took more risk when rates were the lowest in history for the better part of 20 years? I read your posts and I know you know better than that. |
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