Market up not good for some

The Dow’s sharp rise today came after the FED said it would keep interest rates low for at least the next two years.   That’s good news perhaps for almost everyone except those who depend on their cash earning money.  Most FDIC insured money market rates now are below one-percent.   The FED is signaling it’s not likely to change until mid 2013.    Does this mean that we should stay in or buy more stocks…. not depend on much interest income from cash for at least the next 2 years?

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One Response to “Market up not good for some”

  1. Ned Puddleman Says:

    I think the real message in the Fed’s announcement is that for the next two years they are expecting economic troubles and that’s the reason rates will remain low. A weak economy means slower (if any) job growth. It also signals that the Fed is out of bullets in terms of managing the economy. If they crank up the printing press, you are looking at serious inflation and that will hurt everyone in a cash position. I suspect in the next few years not losing is going to become the definition of winning. Durable goods, food, and water becomes the new cash. None of this is good news.

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