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12-05-2013, 10:11 AM
(11-05-2013, 01:25 PM)greengiraffe Wrote: Has anyone come across falling share prices in the face of interest rate cuts? If not, the bubble will keep growing. TINA
Knee jerk reaction to rate cuts would be increasing share prices. But a longer trend to consistent rate cuts would signal deteoriating conditions and warrant Mr Market to start to get depressed and fall.
IIRC, Helicopter Ben started rate cuts sometime in 4Q07 and took about slightly more than a year to get them to almost zero. In this 1 year period, the markets rock-bottomed.
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.