Rate Hike coming,....

[WR888]

The US is scheduled to hike interest rate come Dec 16,... What is the effect to the ASX and NZX Counters ?? I think it's fro real this time, and not the hooga-poogas that we have been hearing the past few months.

And this is not going to be the only one for the next twelve months,... ever since Mr Trump won the elections. It's probably going to be a series of hikes in the next few months,...

Shall we wait before buying more ?

[Joshuatree]

Interest sensitive Infrastructure stocks like TCL and DUE and APA have already bounced strongly back after yield curve steepening dumps it seems to have already been baked in and depending on locked in int rates etc. Ive been watching prop stocks on the ASX too ;many have plateaued or bounced after falling alot but some have started down again so its not convincing depending on their int arrangements?.

I also read somewhere that the FED are limited by how many rate rises they can do; was it a max of .25 % in a year. that doesn't sound right.

[stoploss]

Interest sensitive Infrastructure stocks like TCL and DUE and APA have already bounced strongly back after yield curve steepening dumps it seems to have already been baked in and depending on locked in int rates etc. Ive been watching prop stocks on the ASX too ;many have plateaued or bounced after falling alot but some have started down again so its not convincing depending on their int arrangements?.

I also read somewhere that the FED are limited by how many rate rises they can do; was it a max of .25 % in a year. that doesn't sound right.

Don't think there is a maximum , but people will be saying they won't be able to pay their own interest bill if they hike too much .... bit of history and a tough year in interest rate markets
The FED , FEB 94 +25 to 3.25 % Mar +25, Apr + 25,May + 50,Aug +50,Nov + 75 !!! Feb 95 + 50 to end up @ 6 % !!!!!

[WR888]

Interest sensitive Infrastructure stocks like TCL and DUE and APA have already bounced strongly back after yield curve steepening dumps it seems to have already been baked in and depending on locked in int rates etc. Ive been watching prop stocks on the ASX too ;many have plateaued or bounced after falling alot but some have started down again so its not convincing depending on their int arrangements?.

I also read somewhere that the FED are limited by how many rate rises they can do; was it a max of .25 % in a year. that doesn't sound right.

Infra stocks are sensitive because of their highly leveraged nature, due to the fact that they would need borrowings for their operations. When there are borrowings, interest rates come into play. Another type of stocks that would be affected by interest rates would be, in my opinion, yield stocks. One stock of such nature that comes to mind would be ERM Power Ltd (EPW), which is a two in one, being an infra stock (or utility stock) and a yield stock as well.

What do you think, wouldn't yield stocks be affected too ? What other yield stocks do you think would be affected too ?

[WR888]

That's right,... there is no maximum. Today, they say hikes are data-dependant,....

[Valuegrowth]

http://www.marketwatch.com/story/investors-betting-on-a-fed-rate-hike-will-be-disappointed-again-2016-10-19

Opinion: Investors betting on a Fed rate hike will be disappointed — again

[Valuegrowth]

I found another link which was posted in July 2016? What do you think about it?

http://www.marketwatch.com/story/no-us-interest-rate-rise-until-2018-as-the-consumer-looks-weak-morgan-stanley-says-2016-07-18

No U.S. rate hike until 2018 — and it’s the consumer to blame, Morgan Stanley says

[WR888]

The above links were prior to the presidential elections. Since then, many things have changed,....Thank you for the links, though,... appreciated the reply and the effort,....

[Valuegrowth]

Initially, I also thought second rate hike in December 2016. As I said before, I have a doubt about it. It should begin from 2017 onward gradually and systematically. Irrespective of rate hike or not, savvy market participants will find an array of investment opportunities. Even Brexit, Fed meetings and other central banks meetings brought some great opportunities

http://www.marketwatch.com/story/heres-one-reason-why-the-fed-might-not-hike-interest-rates-in-december-2016-11-16

Here’s one reason why the Fed might not hike interest rates in December

[Valuegrowth]

Finally, widely predicted rate hike was announced by Fed. Instead of causing panic, markets reacted positively. It seems Fed targeting a max rate of 3% in three years time. It is long way to go.It brought some confidence on the global growth.

[WR888]

No counters seemed to be dropping after the rate hike,... but some say the small and midcaps have been hit ! What do you reckon ??

[Valuegrowth]

Many said many things. But markets are telling us another story. We see rally in mid,small and large caps globally. Next great opportunity should come from depressed markets and undervalued small, mid and large caps. Defensive stocks have more legs. They will have one of the longest rallies in the history while having volatility, pull back or correction.

[WR888]

There is one counter that weighs heavily on mid and small caps in the ASX, called WAM. This counter has been stagnant when all others have been running away higher because of the poor performance of these caps, or so, it seems,.. do you know this counter ?

[WR888]

Happy New Year, guys,....