Quote:
Originally Posted by DoubleK
I seriously doubt anyone on CP was investing when Volcker was Fed Chair.
We haven't seen this many rate increases of this size, consecutively.
If JPOW sticks to his guns, each 50 bps is going to hurt more and more.
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Well that's a hot take. And thank you for reminding me that I am old.
The rate hikes may be coming fast here, but things were far worse in the Seventies and early Eighties, as we had chronic inflation that wouldn't go away, along with a lack of growth, due to (among other things) high interest rates. The term stag-flation was coined, and it is one of the worst situations you can have: rising prices, but no growth. (deflation is worse, but thankfully we haven't seen that since the 30s, and I am reasonable confident that there were no CPers around for that
)
The stock market struggled though one of the longest bear markets ever, and "the Death of Equities" was declared in 1983. (Which almost perfectly timed the bottom, and the beginning of the greatest bull run in history, btw)