When the Fed finally raises rates, stocks will go nowhere

Too many factors to forecast this with any accuracy.

Like all forecasts, this can be manipulated to look like the forecaster is always right! ;^)

For example:

On a sports playoff send out 10K letters saying that you have a foolproof method of forecasting the winner.

Divide the letters in two stacks, 5000 letters saying team A will to win, & 5000 saying team B will win.

No matter which team wins, you'll be right on 5000 letters.

On the next game, send 2500 letters saying team A will win, & 2500 that team B will win.

Again, you'll be right twice on 2500 letters. Do the same again, you'll be right on 1250 letters for three games.

Wash & repeat, & you can be right "forecasting" 5 games perfectly leading up to the final.

Now offer the recipients of the last 156 letters the chance to buy the name of the winner of the final for $199.99 (which they can easily win back, of course;^)

Again split the letters into 2 groups, & you'll be assured that half will win, & be suckers for you next year because you had a "perfect" prediction record. ;^)

Trade well.

My prediction is a knee jerk drop, another kneejerk recovery and increase, then going nowhere.

In any case the FED should not increase rates because it exaberates the debt problems. There are other means to constrain credit and money supply and velocity.

Wonderful article - it sounds in summary like:

"When FED finally raise the rates, the rates will be raised."

Well, you've got a 50/50 chance of being right! ;^)

Good luck.

Lol

yeah! gold never falls, do you remember?

"When FED finally raise the rates, the rates won't be raised

It's an easy sector play. Why talk of 'stocks' in general?

no matter what, stocks will go up

Gold only safe currency at this time,