Looks like the Fed is going to let things ride for a while. I wonder if they know something that they are not telling us.
We keep hearing how great things are and how unemployment is 6% and lower. I have a feeling that most of those jobs are very low paying, and in the long run will not allow the employees to live a descent lifestyle or keep up with inflation. But, how can they complain. If you compare having a job with nothing at all, then there is no comparison.
You would think that if things are going well for companies and growth is occuring, interest rates would have to go up. As the economy grows, higher interest rates are a given. However, we are still at 0%. 0% has been the rate for quite some time. Hopefully, the markets will not expect it to continue forever, because it won’t.
For now, the lower rates and the Fed being really dovish, will tend to pump stocks. Who knows how long this will last, but news like this definitely sparks rallies. I did not get any of the cheap shares in the last few days because I had no cash available. If things keep going like this, I won’t get any of the shares that have been punished lately. I have a few weeks before my dividends are paid. We will see how that goes.
Robert the DividendDreamer