EasyAl Posted March 18, 2003 Report Share Posted March 18, 2003 Cutting the rate too low, in addition to keep the mal-investments alive, have profound negative effect on pension funds. Two primary classes of pension fund asset are stocks and bonds. The former has been in dog house for past 3 years. While the value of latter has moved up (assuming ratings have not changed) sharply due to the drop in interest rate, the normial yield is now too low for many pension funds to meet its obligation. If the rate of 30 year UST is around 4.9% and a pension fund needs to have 8-9% return, one has to allocate more asset into stocks (which is presently over-valued) and high yield junk bonds. In addition, when retirees decide to take lump sums, the low interest rate, which leads to low discount rate, require the fund hand out a larger sum of present amount. Link to comment Share on other sites More sharing options...
Farmer Posted March 18, 2003 Report Share Posted March 18, 2003 Hmmmmmm,which button to push. The up button or the down button. Hmmmmm Link to comment Share on other sites More sharing options...
Pigeon Drop Posted March 18, 2003 Report Share Posted March 18, 2003 With all the military stuff on major news channels, people in chemical suits, weapons, threat levels, etc, it seems the FOMC just doesn't get the ratings it used to. People tuned in elsewhere. Link to comment Share on other sites More sharing options...
strikerm3 Posted March 18, 2003 Report Share Posted March 18, 2003 rates unchanged......He has to leave room for a terrorist attck or bad war moves etc. IMO Link to comment Share on other sites More sharing options...
DrStool Posted March 18, 2003 Report Share Posted March 18, 2003 Treasuries rally last 10 minutes. Stocks to sell off? 1,3,5, and 8 day ozzies are on the cusp. Could be. Link to comment Share on other sites More sharing options...
Oyster Posted March 18, 2003 Report Share Posted March 18, 2003 sorry folks..I was busy with Crapvision charts....I sold scale up 863-866 into 1400 timeframe...bbl Link to comment Share on other sites More sharing options...
DrStool Posted March 18, 2003 Report Share Posted March 18, 2003 No comment? What the hell is that. Link to comment Share on other sites More sharing options...
Goldmember Posted March 18, 2003 Report Share Posted March 18, 2003 no change, no comment.... Link to comment Share on other sites More sharing options...
soup Posted March 18, 2003 Report Share Posted March 18, 2003 first move is the real move? so fade the counter to the first move? Link to comment Share on other sites More sharing options...
EasyAl Posted March 18, 2003 Report Share Posted March 18, 2003 They are clueless. Â FED SAYS CAN'T ASSESS RISKS TO ECONOMY Link to comment Share on other sites More sharing options...
Goldmember Posted March 18, 2003 Report Share Posted March 18, 2003 Oh, please sell off the stocks! Link to comment Share on other sites More sharing options...
strikerm3 Posted March 18, 2003 Report Share Posted March 18, 2003 no comment, haha! Its so proper though. Link to comment Share on other sites More sharing options...
soup Posted March 18, 2003 Report Share Posted March 18, 2003 cat have beeny b's tounge? Link to comment Share on other sites More sharing options...
Goldmember Posted March 18, 2003 Report Share Posted March 18, 2003 SELLING! YES!!! Link to comment Share on other sites More sharing options...
Pigeon Drop Posted March 18, 2003 Report Share Posted March 18, 2003 And appropriately, market can't decide to go up or down. Link to comment Share on other sites More sharing options...
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