In the past when the stock market has decided the Fed will be more pro-growth it's celebrated by going up for a few weeks at a time.  Will today's rally continue for a while, or will people give up hope on interest rate relief in the next few days and continue with the range-bound trading?
206719
ONE DAY WONDER and here's why:\nGenerally a one shot news item that is of no direct consequence to the market itself is quickly forgotten.  However, yesterdays news gave hope to the theory that the Fed was done raising interest rates for the time being.  Today however, 4/19/06, the morning news told of March CPI (inflation) being up .4%.  Multiply that by 12 months and it is an annualized inflation rate of 4.8%...much higher than Jan and Feb, which together averaged an annualized 3.8% The stock market HATES inflation because it a precursor to higher interest rates and that hurts the market by making bonds more attractive and also because higher interest rates hurt business profitability and slow down the economy. Today's bad news neutralized yesterday's good news.
177681
They adjust the rates with inflation.  The measure depends, but you could take a look at their prospectus.  But there's probably a cap, so if inflation goes up 100% tomorrow, your TIPs won't follow that much.
199897
Yes I heard about it. All immigrants should suport it. According to the anti-immigrant people, "immigrants are a drain on society."  If this is true, then during the day on May 1st the stock market will surge, and the economy will boom.  If not, we prove them wrong once and for all.  We know what will happen!\n Don't listen to those people who said that they will go and buy more things on that day, if they said that it is because they know that it will affect the country!
399526
Prime rate was 7% on 11/05 and 8.25% on 11/06.  The reason why they go up is because of the Fed wants inflation to remain below 3%.  Too much inflation hurts everyone because prices increase rapidly.
567310
Hey !\n\nI do agree with u that the stock market is falling. But dear, how come u expect the consequent rise in anything, isn't it?\n\nExcess of anything is poison, right?\nand that exactly has happened in this case.\nwell, let me tell u that the correction was expected even when the market had risen to the point of 6000, then 8000 and then after at 10000. moreover, let me tell u this was beyond the expectation ie. of 12000 pts. \n\nAnd that is why the market had to fall anyway. there is nothing wrong in that, right?\n\nNow, another issue to ponder is that it is also because of the increase in reservation quota and the corporat honchos didn't like it anymore. so they protested by way of reducing their stake and that too by way of bringing the fluctuations in the economy also.\n\nBut one thing is always for sure that the short term correction is much much better than that of the long term berrish market.
16525
Seems like AMTD ( ameritrade is giving out 6$ dividens.) Watch and see what happens to its price in the coming days. \n\nIf I were to guess I would say the price would fall.
262094
The direction of the index is an indication of whether fear or greed is predominating in the country. Right now it appears the fear is becoming more dominant than greed. The index has fallen below the 50 day moving average and is approaching the 200 day moving average. \n\nThe same can be said for the Dow-Jones average. \n\nAs the average falls, people become more fearful and tend to cut back on their expenses, especially discretionary spending. That in turn effects the economy. \n\nThe effect on the U S economy is more difficult to predict and I fear that I am not up to that task.
301943
You are learning a lesson here. The market moves on greed and fear. Fear now has the upper hand and with some reason. Have you looked at the budget deficit, the balance of trade deficit, the unfunded government obligations, the value of the dollar, the price of oil, the potential rise in mortgage rates that is likely to cause more than a few home owners to fold up shop, the jerk in the White House. \n\nSome of the sell off is based, so I have been told, on inflations fears. Now assuming that inflation does heat up companies that are leaders in their industries are not going to be hurt earnings wise. They may be stock market wise, but not earnings wise. Also with the drop in dollar companies with lots of foreign earnings will do well, MSFT for one.  \n\nWith reguards to the portfolio, you know of course that Mexico has an election coming up and the hands on favorite to win is in the same mold as the president of Venezuela.
4128
Your question asks if the state of the housing market is one extreme (bubble) or the other (media hype), but I think the answer lies somewhere in between and also depends on your personal circumstances.\nThe general market appears to moderating and by "moderating" I mean the rate of housing price growth is slowing.  This doesn't mean that prices are falling.  The media often misses this subtle, yet important distinction.  Slowing price increases are a good thing because it means that the market is starting to act more rationally.  We all know that prices can't continue to increase at the same rate they have for the past 3-5 years (+10 to +30% a year).  So, the moderation of these increases are not a sign of trouble.  They're a sign of a return to rationality.\nWhat would be a sign of trouble?  A few things come to mind:\n- A substantial increase in job losses and unemployment on a national and, more importantly, a local level.  Think about how business is doing in the L.A. area and where it is likely to go in the future.\n- A substantial increase in the long-term interest rates would be worrisome because fewer people will be able to afford to buy your house for a high price.  Notice I said "substantial".  Everyone knows that rates will go up slightly over the next year or two.  But that's natural as our financial markets try to get to a normal interest rate level.  Our current rates are abnormally low and returning to 7% ish isn't such a bad thing.\n- We restrict immigration substantially.  Immigration trends are driving the demand for first-time home buyers in the U.S.  If we restrict the number of people who can enter our country, become productive citizens and eventually buy a home, we'll lower demand for housing.  Especially in Los Angeles!\nI don't trust the media to give me a balanced view of the housing (or any other) market because that's not their objective.  Media's goal is to get you to watch and they wouldn't get very many viewers if they said that the market would likely just moderate going forward with only slight increases for the future.  They get much more attention when they find data that will allow them to make dire predictions and predict doom and gloom.\nCurrently, the prices of houses are being driven by people's ability to afford the monthly payment and the supply of people looking to purchase houses.  I think that increasing rates will lower the prices a little bit, but I don't think prices will fall significantly causing many people to lose many and file bankruptcy.  I personally don't know anyone who is overleveraged and would be devastated by a decline in housing prices.  They would just continue paying their mortgages and living in the house.  However, when I talk to people about the market, they all think there is a significant population of people who are going bankrupt.  I'm not sure there is much real data to support this paranoia, however.\nNow, to address the second part of my answer -- your personal situation.  If you buy a house for the right personal reasons, then you won't have to worry about future housing prices as much.  If you're committed to staying the local area and you have professional job stability, then you will have more security to ride out any short-term price fluctuations.  Additionally, you should consider the value of owning versus renting along other lines than pure investments.  What is the value of owning your own residence and being able to upgrade various amenities when and how you please?  (Hey - new jet tub! Granite countertops!)  What is the value of being able to demonstrate security to your family and friends?  (Honey, I really am committed to building a family!)  What is the value of not having to deal with landlords and other renting hassles?\nI'm not saying there are concrete answers to those questions, but you should consider them and if they have high value to you, then
578139
Interest rate worries are the main concern.  Bernake is lookingot hike the prime another .25 caus eof inflation, more then anything thisis keeping all rallies down.  Don't forget the tech bubble burst from 2001 happened when we hit 6.5% interest and many investers think a ressecion will hit again if it goes that high.  Bernake clearly doesn't know what he is doing.
432098
As you know, the Fed caused this bubble by lowering the interest rate right after the .com crash in an attempt to prevent a recession. It didn't take much of an interest rate increase to slow it down and let the true nature of the economy catch up with it.\n\nIt is going to get worse. A lot of homes are going to be on the market for less than what they were purchased for. If you want to stay in the industry, come up with some creative selling and purchasing schemes like they did right after the PC crash in the early 90s.\n\nNow is the time to create visibility for your company. Make sure everyone in town has a flyer and business card. Set your self up as an expert on how to deal with and plan for the changing situation. Give free seminars. Issue free written plans offering alternatives that can be picked up from you office or downloaded from your web site. Do not appear greedy. Become the nice guy expert. People will hunt you down when it is time. Become the hunted.
224694
Ajay, you must first mention which market are u r referring to..I can guess ( by your name) you are asking abt Indian Sensex.\n\nAnyways now that the F&O settlement is over, we can see some buying and markets will increase this week.
232521
Any long-term measurement of the Market shows a gain.  It's a correction.  Those who lose money are the ones who practice panic-selling.
297060
Interest rates and bond values move inversely. Think of a playground see-saw. Interest rates rise, and existing bond values fall. Inflation is something that has and will cause the federal reserve to raise short-term interest rates, which causes existing bond prices to fall. If you are investing in bonds for the income they generate (regular interest payments from the issuer), then you'll be OK. If you're investing in bonds with the intention of selling them later for a gain, you may not be successful. Of course, even the experts are really bad at predicting interest rate moves, so don't try to predict the future too much. If you buy individual bonds, pay attention to quality and consider building a bond ladder. If you are working with a smaller amount of cash, consider bond funds. Also, be sure to balance this investment with some equity (stock) investments to give you diversification. Good luck!
97786
Follow the 10 year treasury bond.  If interest rates in the US go up, then this attracts $$$ to dollar denominated investments which makes the $$$ stronger against other currencies.  \n\nIn the last week, it has moved from 4.65% to 4.85%.  The trend is for higher rates, but anything can happen in a week.  You can follow the bonds on yahoo finance, symbol ^TNX.  When you get a quote, you move the decimal point one place to the left and you have the yield.\n\nGood luck!!
127856
it is an awesome return. doubt that you could repeat that month after month. that is over a 90% annual return. \n\ni don't track my returns on a daily or monthly basis as it would cause me to make decisions that don't fit my investment style. if you make 10% one month and think you are the investing GOD, then it may change your style and cause problems the next month. i would be thrilled to make 20% a year as this would be double the stock market historical norms.\n\ngood luck
573246
Absolutely yes!\nWith all of the "special financing" that was done in this last boom, (interest only, negative am's, ARM's, 80/20's).  They all work if you are in and out quick, few years max, or in a boom market when everything is going up 20-30% a year.  When prices quit going up and are coming down, and interest is on the rise and people barely made the payment when the interest was low. LOOK OUT BELOW!!  \nThere is going to be a crash similar to the one in the early nineties, just wait and see.