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Re: ID Supermoney post# 50458

Monday, 01/28/2013 4:55:13 PM

Monday, January 28, 2013 4:55:13 PM

Post# of 80868
Higher interest rate could be bad if it's already too high. But it's not right now.

When interest rate goes up, bond price goes down. In turn, bondholders switch to stocks to seek higher returns. This has been the trend since the beginning of 2013. The DJIA has gone from about 13,000 to 13,880 in 30 days. This is not my theory but what is actually happening and is expected to continue in the next several months.

Just saying, now is the good time to be in stocks. But don't be the bagholder when the next crash or major correction comes, as it has every 4-5 years.