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by felipellrocha 1400 days ago
I think you know the answer:

> The recent interest rate hikes also didn't seem to have nearly as much impact on the markets as everyone feared they would.

Markets aren’t rational

3 comments

I think the markets have been far more rational with regards to rate hikes than you are giving them credit for. It's looking like the rate hikes were priced in back in early spring, and since they've actually been slower than expected the market has experienced a bit of a bounce back.

Month over month inflation was 0 last month. We're obviously not out of the woods here, but consumer demand is dropping along with oil prices which seems to be leading the fed to believe that they may only need one more sub 1% hike in early fall. That would be much better than the doom scenarios everyone was talking about 6 months ago.

How can you be sure? Maybe they're just acting according to a rationality that humans don't understand.
Or humans aren’t rational so neither are markets
And, as we all know, they will remain irrational longer than you can remain solvent.