JP Morgan Says a Rate Hike Would Be Good For Stocks!

[Smaulgld]

Of course it would be bad for gold but nothing is bad for stocks!
http://www.marketwatch.com/story/a-fed-interest-rate-hike-this-year-could-be-good-for-stocks-jp-morgan-2015-11-02

[timosman]

Of course it would be bad for gold but nothing is bad for stocks!
http://www.marketwatch.com/story/a-fed-interest-rate-hike-this-year-could-be-good-for-stocks-jp-morgan-2015-11-02

Too bad it will not happen, but we need somehow to explain the stocks tanking. They tanked because the Federal Reserve did not raise the interest rates ;)

[Smaulgld]

Too bad it will not happen, but we need somehow to explain the stocks tanking. They tanked because the Federal Reserve did not raise the interest rates ;)
Yes so when stock crash after a rate hike it will be unexpected and they can look to blame China, Russia, Ron paul or whom or whatever because stocks were supposed to rise when rates were increased!

[timosman]

Yes so when stock crash after a rate hike it will be unexpected and they can look to blame China, Russia, Ron paul or whom or whatever because stocks were supposed to rise when rates were increased!

No, no. I think the stocks will crash without the rate hike. Then Yellen will be blamed for not raising the interest rates. Remember the long term goal is negative interest rates and elimination of cash.

[Smaulgld]

No, no. I think the stocks will crash without the rate hike. Then Yellen will be blamed for not raising the interest rates. Remember the long term goal is negative interest rates and elimination of cash.

I know, i agree, I was making the other point that no matter whether they raise rates or not, no matter what happens it won't be the Fed's fault. And yes my scenario too has been all along, negative rates https://smaulgld.com/negative-interest-rates-and-janet-yellen/ and cashless https://smaulgld.com/war-on-cash/ . But I think they will sneak in one rate hike just for credibility sake.

[timosman]

But I think they will sneak in one rate hike just for credibility sake.

They may, although it would make them look guilty if the economy crashed later. I think they will read some economic signals(tea leaves) which would tell them rate increase is a no-go and will slowly steer downward. This will delay the crash but also will put everybody on a very fast moving treadmill. Many of the sheep may not survive and will have to come crying uncle to the government. Once 90% of the population is sucking the government tit, it is not that important what the economy is doing as long as the weekly checks are coming.

[devil21]

Probably good for bank stocks that benefit from jacking rates on customers.

Not so good for every other sector's stocks.