Quote:
Originally Posted by manaboutown
The Fed rate, that is. Many of us remember the 1970s and 1980s and what happened back then, high inflation, very high interest rates.
How can a portfolio be positioned in preparation?
Any ideas or suggestions?
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According to a couple friends who are big boys in banking and mutual funds, interest rates will be lower by year’s end than now, the inflation rate is going to drop a lot, and if there is a recession, it will be short and small. Paul Krugman is saying the same, and some analysts in the WSJ, and I hear also some major European banks. Maybe they are all just trying to raise our spirits, but it was enough for me to put everything back in stock-based mutual funds.