We just raised interest rates for the second time this year. Now, we're expected to raise them two more times.
Is it time to start worrying yet?
It must be time to worry. Popular economic theory dictates that rising rates make fixed-income investments more attractive than equities. Investors will sell stocks and buy bonds, being the rational, thoughtful folks they are all the time.
Higher interest rates also mean higher interest costs for corporations and consumers alike, forming the double whammy of lower profits and lower spendable income that will inevitably ensure the stock market tanks.
The folks on TV looked pretty worried about it. I should be as well, right…?
Are you kidding me? If you want to worry, there's a veritable smorgasbord of much more worrisome stuff out there…
We ignited a trade war with several allies that could hit the economy pretty hard if it lasts for the foreseeable future.
We have a looming UPS strike in which 260,000 pissed-off Teamsters could instigate an economic disaster.
We have India and Pakistan hoarding almost 300 nuclear missiles ready to go, and they detest each other for sound, well-thought-out national and religious reasons.
And the midterm elections are starting soon. Prepare for your TV to turn into a political shill with self-adjusting volume.
Isn't that better? We took those sissy interest rate worries and put some hair and fangs on them. When it comes to worrying, my motto is go big or go home.
That's because I've been in this game for over three decades, and I've profited handsomely through some of the most worrisome times in the history of the United States…
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