So what is the ideal scenario? They raise rates to 1.5% maybe, not high enough to give people an alternative to stocks but enough to make people think the economy is doing OK?
What would be required for Hussman's stated target of under 1000 on the S&P 500 to be achieved? Global thermonuclear war?
Wow! Love these days! I will light a major stogie if it hits $250 per share! Too bad all the hedge funds sold and missed the greatest run of all time!!!
Agree with you I think it would be at least 10-15 years before they raise as high as 1% so why would stocks drop?
All that is true except for rate hikes I believe the rally is reflecting no rate hike in December and probably not in 2016 either.
Can equities continue to rise?
Why you say that? As I type SPY has already made back half its losses and at this rate will be big green today. If the Fed doesn't raise over 2%, can't stocks just keep rising.
Sounds good, I bought at 3.55 pre market. Let's do it to it.
If they keep funds rate under 2% for many years can stocks stay elevated like this?
It's amazing- looked last night, SPY would've been down 20 cents, then flat, up 20 cents, 40 cents, 60 now 80. It's really powerful- just grind higher all the time- no possibility of a Fed hike in the next 5 years.
Seems a coin toss.
I will be ready and waiting.
See the volume in the December $5 puts? I've been selling those. Somebody thinks this is going lower still apparently. I'd be OK having almost all my risk capital in this at 4.75 cost from selling the puts.
It would be hard to imagine an August repeat given positive seasonality. I could see perhaps 25-26 on VXX but I'm not sure much higher than that- IOW UVXY 50 area max.
I am thinking I will enter VXX short no later than 10 AM Eastern. Every time we have had a weekend event like this, VXX has made its high of the week in the first half hour of trading. Going to be interesting! I think it might gap up a couple bucks.
Ha ha, I agree. The big concern is it looked like these POS products were already hot before the attacks, so they might have a little more upside- maybe another 10-15% in VXX and 20-30% in UVXY. Then- CRASH! They go to 0!