I'm talking in the short term 6mos to 1 yr? Seems a possibility with a record DOW,stalled jobs, and a good budget deficit with an already weak dollar.
2006-10-07 16:51:11 · 3 answers · asked by frith25 4 in Business & Finance ➔ Investing
Interest rates are still rather low, despite all the public whining to the contrary. Keep in mind that the only way to strengthen the dollar is to raise interest rates to incourage more inflow of money. Whether that happens or not is questionable. The government is scared that housing could completely collapse and with good reason. If ARMs ratchet up, there are going to be a lot of sunk ex homeowners. Greenspan screwed the nation good when he dropped interest rates to zero in 2000. That move completely distorted the entire economy. Things have to rebalance eventually.
2006-10-08 03:07:39 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Remember, nobody can answer with certainty.
But, my experience tells me no. It seems we're on an upswing in the markets right now. Oil prices are down, which means earnings and profits will be going up. It looks like stocks will win out over bonds over the next 6 months.
If you have any other questions or comments drop me a line at my site or email me:
http://investingsensei.blogspot.com
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2006-10-09 16:07:06 · answer #2 · answered by Johnny B 2 · 0⤊ 0⤋
Whenever a market makes a new high for the first time in a long while, the trend usually continues.
I would think you would want to avoid bonds like a plague.
2006-10-07 17:47:35 · answer #3 · answered by dredude52 6 · 0⤊ 0⤋