"Line go up" is fine when the new money is all concentrated in the imaginary financial sphere and doesn't leak into the real world. Now however they went and created even <i>more</i> new money, and holders of the "imaginary portion" of the money supply want to realize it before it loses value... which is the inflationary disaster they've been pushing ahead and putting off forever with "line go up".<p>Like living under a big, poorly built dam. You know there's this potential flood on the other side, looming over you. So you pile another foot of dirt on top of the dam and yay! the disater isn't as near. Keep doing this for 15 years and you might forget the reason for the ritual of the dam raising and consider the lake to be proof of your virtue and productivity.<p>Now the water isn't as wet and we want more, <i>need</i> more; surely we can just carve a few channels in the dam and let some of that water flow, right?
Why is the Fed attacking the stock market? Do they not care about 401ks? What am I missing about stock prices vs bonds except that as interest rates go up people will buy bonds over stocks. But even then stocks are likely a better choice.
As the Fed has backstopped every drop since 2009 with seemingly endless liquidity, passive investing has been all the rage over the last decade+. Unfortunately, the party is coming to an end soon, and who knows how history will judge the Fed's experimental QE and ZIRP policies in retrospect. With inflation at 40 year highs, the Fed no longer has the privilege of supporting the passive indexers like it did in the past.<p>Being worried about very low or even negative real returns over the next 10-15 years (as has happened many times in the past, most recently 2000-2013) led me to start building sophisticated algorithmic trading models that can produce positive absolute returns in any market context in early 2020. While there have been ups and downs, I've turned 525k into 1.4M since deploying live in April 2020. I've recently decided to publish 7 of them at <a href="https://grizzlybulls.com" rel="nofollow">https://grizzlybulls.com</a>, 3 totally free and 4 premium.