The Article said
The quarter-percentage-point increase in the federal funds rate will likely be only the first of many rate hikes over the coming months as the central bank returns interest rates to a neutral level.
The vote in the 12-member committee was unanimous. All twelve Fed banks also requested an increase in the largely symbolic discount rate, an unusual level of consensus.
The central bankers signaled that they would raise rates at a slow but steady rate, probably a quarter point hike at each meeting, economists said.
My analysis –
Kool. The I have anticipating the above and am waiting for opportunities to arise over the next 12-18 months. Property prices wont increase much if at all and may fall further in places – so there is no hurry to get into the market further now. Rents may even increase over this period making it more attractive to make purchases then.
Hi Guys,
seeing this as the first interest rate rise, in the US, after 13 attempts over the last years or so, and with the new tax laws coming into place today in the Australia’s new Financial Year, IMHO i wouldnt be surprises to see interest rates rise from anywhere from, now to the next 18 months to about 8.25%, if you look at our current government with these new tax laws in place, and a slight increase in inflation due to our “internal governing in its changes” and the increase of the gold value, they are printing more money, than the value of our earned dollars are worth every day…
… yes the property market is slowing, but as i see it, its only a correction in the real estate market… just a little off the subject here, but when the resource market starts to move and the All Ords have been consisently increasing steadily, the Australian share market, is proving to be turning into a bull market…
for me personally, im still investing into property, but being more cautious and selective of which property to choose (many people, i am talking to now, are getting heated and worried about, negative equity in their property, due to buying at the top of a boom) could be some good bargains to watch out for,
in my event, im channeling more and more money into the stock market, and have been getting much greater and better returns, that in what our current property market has to provide…
though again, and taking the advice from Robert Kiyosaki, (Rich Dad), who is many to most of us, he is even unsure of where to be putting his money into which market at the moment… in hearing of this and in acting in contrast to it, which market will out perform each other into our new financial year?
Cheers,
sisOriginally posted by Still in School:just a little off the subject here, but when the resource market starts to move and the All Ords have been consisently increasing steadily, the Australian share market, is proving to be turning into a bull market…
Cheers,
sisSiS you should stick to property as i agree with your thoughts on that.[biggrin]
The Aus sharemarket has been in a bull run for at least 15 months now and is at all time highs (did you miss it?). To say that our market will continue is very optimistic especially when the US market is set to rally.
SuperTed,
>> The Aus sharemarket has been in a bull run for at least 15 months now and is at all time highs (did you miss it?). To say that our market will continue is very optimistic especially when the US market is set to rally.<<
I don’t know if I understand you. Your post seems to indicate that you believe the ASX will come off, if US markets rally. Is this what you mean? Because traditionally, the two markets are fairly highly corelated. Sorry if I’ve misunderstood.
My view: Well, I don’t have a view. Bias can be expensive. But FWIW, be very careful with sharemarkets at the moment. The landscape *may change dramatically after the US elections.
Originally posted by wayneL:>>I don’t know if I understand you. Your post seems to indicate that you believe the ASX will come off, if US markets rally. Is this what you mean? Because traditionally, the two markets are fairly highly corelated. Sorry if I’ve misunderstood.
My view: Well, I don’t have a view. Bias can be expensive. But FWIW, be very careful with sharemarkets at the moment. The landscape *may change dramatically after the US elections.
Hi Wayne,
Was waiting for someone to pick that up
Normally their is a correlation between the markets, i agree BUT
The Aus market has been favoured by major funds and is nearly fully priced (highs) where as the US market is under priced. They have been out of sinc for some time.
Once the US comes back into favour funds will move into the US market (for larger growth) at the expense of ours.
I think sideways is our outlook for the rest of the year, unless the US data does a complete reversal and we keep “favoured” status
I think the US elections will be a win/win for their market who ever gets elected over there.
Interesting viewpoint Ted,
>>where as the US market is under priced<<
This has been a bone of contention for quite some time. It will be interesting to see how this plays out.
Originally posted by SuperTed:Quote:Originally posted by wayneL:US market is under priced. They have been out of sinc for some time.
Interesting, if you look at returns both US & AUS mkts are near the top. Just because the US is still under there peak of 11,700 does not mean its good value. If you look at their returns their market and increasingly ours is driven by the funds having to stick our money somewhere and they just keep bidding up the same performing shares as they have no where else for our money to go.
Not sure if I am making sense here but its starting to worry me.
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