The Contrarian

[AIMster]

Interest rates will rise, the question is when, not if.

Given the relatively historic lows, what else can they do if not just sit there but go up? Not much further down to go to 0%. The thing of it is that rising rates are usually used to help cool down an overheating economy. This economy is anything but. With joblessness being where it is and new uncertainties out of Washington, given the change in power structure between the Democrats and Republicans it will be interesting to see.

Of course, with Bernanke cranking out $ at the Fed, an inflation ignition becomes more real all the time also. In that case, we could be in for some volatility and turbulence - which in a contrarian sense is not necessarily a bad thing.