34 Years Ago Today
- Thread starter BW Lion
- Start date
The day that Marty Zweig became a legend. RIP Marty.
www.thechartreport.com
5 Things to Know About Martin Zweig
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Growing up, WSW was always educational Friday night viewing. Thanks Dad.The day that Marty Zweig became a legend. RIP Marty.
5 Things to Know About Martin Zweig
At some point but not anytime soon. The fed funds rate was around 7% back then. It's 0.25% today.
Does history repeat itself?
I expect a big market correction down the road after interest rates normalize.
What is ‘norm’ ?? Currently the US has some of the highest rates in the world despite having the best credit
The fed increased rates 9 consecutive times leading up to Covid. They also sold off more than a $trillion from their balance sheet.
The fed is currently buying $120 billion of bonds each month and the fed funds rate is 0.25%. Imagine the fed funds rate rises to 2.5% and the fed is actually selling vs buying bonds. Mortgages would be about 4.5% and car loans would be close to 6%. I think the market falls 30% if/when this happens.
Why would FF move to 2.5%? And why would they sell?
If it happens overnight you might be right
If it happens over 10 yrs? I doubt it
We are in a bull market that has 6-8 yrs to run. If it corrects 30% buy!
I've never taken the time to understand hardcore technical analysis. Some say it's astronomy. Some say it's astrology. I have been paying attention to and at times following this one guy who is an EWT trader. He has been right on this bull market for a while now and, like you, says that it has legs. The guy has been really right on it for a while now. That's all I know. I hope that you're both right.
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The only things to understand are that Fundamentals no longer matter so Technical Analysis is pretty much worthless. Having a sound understanding of herd mentality is probably more important at this time.
Exactly. It's like stocks suddenly going on sale 20 percent off. If you have cash in your portfolio, that's the time to congratulate yourself for your foresight and use it.
