Interest rates are headed higher

February 10, 2007



Money is cheap. And some experts say it could stay that way for years. That's creating opportunity—and brand new risks

Higher interest rates may not be good for the markets.When everyone gets it and all sorts of explanations are offered for why interest rates are low and they will remain low, the probability of them going high is very high. The magazine cover indicator at work.

8 comments :

  1. Yes, sir. Your are right on. Rates are going up.

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  2. Could it be that the red color indicates continued fear in the markets? Dow 20,000 by 2010, I am calling it.

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  3. Since 76% of the stocks are above their 200 day MA, I am betting that the stocks will go down.
    I am shorting HXM, ICE and BLUD

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  4. The Economist also has an interesting article on global liquidity and rates: http://www.economist.com/finance/displaystory.cfm?story_id=8669202

    PS - I can remember about a decade ago, when the covers were talking about the death of inflation. It was just hibernating.

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  5. http://www.trendpimp.com/article/162/The_Toyota_FTHS_Rocket.html

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  6. caravaggio, that link doesnt work. Would you mind posting the text of the article or a synopsis? I have been wondering lately, what is this liquidity, is it just easy loan money?

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