Interest Rate Increases

[mimo_100]

Regarding increases in interest rates.

I keep reading that the market is going to react strongly when the Fed raises rates.

We know that most likely any increase will be 1/4 of one percent - much less than the "normal" 1/2 of a percent.

Knowing that most likely the market has already discounted any interest rate increase, it seems to me that any decline in the market reflects some fundamental change other than interest rates. What do you think?

[blindsquirrel]

My guess is a net down reaction over-all, but initially just a lot of volatility. I think the market has been floating up and sideways for a while just waiting for something to react to (election, oil prices, interest rates, etc). I believe a downward correction is due.

[Louetta]

Here's a statement from Fastenal's (FAST) 10/11/16 earnings report: "The top line has been adversely impacted by lower sales to manufacturing and construction customers due to overall weakness in the industrial economy." They make nuts and bolts, etc. Supposedly sales of companies like FAST and people who make things like cardboard boxes (which people use to ship product in) are good indicators of what's happening at least in the industrial economy.