1. Stock prices of several American companies are dropping since the end of last week because stockholders are afraid of the upcoming setting of the interest rates.
2. They will continue to drop until the new rate will be published by the US Federal Reserve on Wednesday. Interest rate is expected to be raised by 0.5 percent.
3. If the rate is set to 0.5 percent or lower, the courses will stop to drop and rise instantly because all the short-selling has already happened by then. If the rate is unexpectedly higher than 0.5 percent, the courses will continue to drop for some days, but that's unlikely.
4. Do you think it's a good move to invest before the announcement of the interest rate or am I missing something here?
All of this has already been priced into the market since like October
Nice try though
>>998338
>everything has been priced in so market wont move
You are literally retarded
I think its a good move to buy because the market is expecting yellen to raise the rates (shes put it off long enough) So you wont see a big drop with the rate increase. But it could bounce back coz less uncertainty in the market after fed decision.
>>998405
Have you not been keeping up with the economy? While this isn't always true, it's been a consistent theme for 2015.
>>998335
The last time the Fed failed to raise rates with the expectation of one, the market didn't move.
>>998335
God I wish it would just happen already. I'm down probably 10-15k because people always get "scared something MIGHT happen" instead of realizing the price has dropped 5 times on no-news from the Fed
>>998518
I'd say if that happens, share value will increase 3-7%, depending on the market sector and company youre invested in.
Most likely they will raise the rates the quarter point as people believe. However, that will only attract more money into dollar with a huge force and the us stock market will continue to shoot up 2016. If they wont raise the rates the market will go up anyways as long as the dividends offer better payoff than zero rates.
>>998405
what is forward guidance?
>>998338
actually long before that
about two years ago it started getting priced in
>>998405
what will happen is that there will be a dollar sell off, as the people who priced in the hikes are now going to realize their profits, which they will use the liquidity of everyone trying to buy dollars to get out of their positions.
once everyone is in their new positions, the people who realized their profits will now start shorting the dollar temporarily to take the new money.
>>998335
>expected to be raised by 0.5
stopped reading there
0.25 you idiot
>>998335
>.5%
If that happens markets will panic
The expected rate is .25% retard
>>998652
What makes you say that? I just said last time it happened, the market didn't move. What makes you assume 3-7%?
>>998815
You're on 4chan talking to retards and you want a logical explanation? Come on, man.
>>998335
There will be no interest rate increase. Yellen won't piss off who appointed her.
There will be no interest rate increase on Wednesday.
>>999013
This guy is never wrong.
>>998729
>stock market will continue to shoot up
lolwut
>Everyone wildly guesses something without any remotely source: The thread
/care
Compound interest works in my favour in the long run anyway.
It's priced in m8 the people with actual money got in before you
