I was reading economic news when I stumbled on this:
http://blogs.reuters.com/macroscope/2015/02/13/expected-fed-hike-in-june-may-coincide-with-ugly-reality-falling-prices/
I’m not an expert here but here are some of my thoughts on this issue.
The Feds have been pushing back their rate hikes for quite some time already. I would feel that they have to push it up sometime this year, initially was around the end of the first quarter but now seems to be around the 2nd to 3rd quarter this year.
If it does rise around that time, it’s good as stock prices will fall (even better as I probably have gotten my performance bonus as well). Which means it would be good to buy stocks with good growth opportunities for discounted prices.
However, on the other hand, increased interest rates will mean a harder time for certain stocks such as REITs (where I invest in them for cashflow) as it eats into the earnings which might affect the dividend payout and share prices. Of course, the REITs may increase rental and like to maintain the payout but that remains to be seen when the time comes.
For now, I guess it is good to hold onto cash and wait for the Great Singapore Sale =D
http://blogs.reuters.com/macroscope/2015/02/13/expected-fed-hike-in-june-may-coincide-with-ugly-reality-falling-prices/
I’m not an expert here but here are some of my thoughts on this issue.
The Feds have been pushing back their rate hikes for quite some time already. I would feel that they have to push it up sometime this year, initially was around the end of the first quarter but now seems to be around the 2nd to 3rd quarter this year.
If it does rise around that time, it’s good as stock prices will fall (even better as I probably have gotten my performance bonus as well). Which means it would be good to buy stocks with good growth opportunities for discounted prices.
However, on the other hand, increased interest rates will mean a harder time for certain stocks such as REITs (where I invest in them for cashflow) as it eats into the earnings which might affect the dividend payout and share prices. Of course, the REITs may increase rental and like to maintain the payout but that remains to be seen when the time comes.
For now, I guess it is good to hold onto cash and wait for the Great Singapore Sale =D
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