>fed says rate hike coming due to improved economy
>wall street gets "spooked" by this news acting like its a bad thing
>stock market turns red
no wonder why everything thinks this shit is rigged
>t-the economy is doing good guys
>oh fuck better overreact and drop value in everything!!!!!!!!!!!!!!!!
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>everything thinks this shit is rigged
Only the "everythings" that don't know dick about how markets work.
New to this?
It's all manipulation
That's how the modern Fed works post-QE. I don't have the picture of the flow-chart from zerohedge saved but it goes something like "Economy is good-Fed threatens rate hike-Economy slows down-Fed backs off-Repeat".
Also, Wall St. should get spooked by a rate hike, it means bonds yields will increase and returns in the equities markets will be lessened. It's pretty basic econ/finance.
>It's pretty basic econ/finance
That shit's in pretty short supply around here.
returns will be the same but the relative value of those returns is diminished when weighted for risk.
About 90 percent of trades are hft/automated anyway. It's all a house of cards.
Returns from before the rate hike to after the rate hike (so rate hike included within the return period) will be less than average returns from the equity invested in before the rate hike. Once the market adjusts, returns will normalize as they always do but I was just saying it simply so OP could understand the basics.
>stock market decreases in value, naturally by its own accord
>OH MY GOD, SOMEONE DO SOMETHING
>fed prints four trillion dollars to boost stock prices
Yep, definitely not rigged.
That's not how increasing the money supply works. The Fed by definition was created to control inflation, currency, and market stability. If it did nothing and let the market crash then it wouldn't be doing it's one job would it? Now sometimes the Fed does something and it's too little too late and the market crashes anyways, that's going to happen occasionally, but make no mistake, the game isn't rigged just because you don't understand it and aren't good at playing.