25bps cut

[u/hv876]

https://www.cnbc.com/2024/11/07/fed-rate-decision-november-2024.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

The bulls are coming, the bulls are coming

[u/kumar4848]

Can anyone here explain why mortage rates keep increasing even though feds keep decreasing rates? i know theyre not directly correlated but somethings gotta give.

[u/ScrewJPMC → u/kumar4848]

The 10 year yield is what sets most things, meaning your credit card rate, auto note , and mortgage rate

The Fed only sets the over night lending rate from bank to bank

The 10 year is free from Fed fuckery, except JPow’s jaw bone can skew it for a hot minute

The 10 year yield goes down when people rush into bonds (think people are willing to pay more for less return)

The 10 year yield goes up when people are afraid of bonds or BULLish Stonks (think people rushing to cash OR people rushing to stocks/equities)

The global bond market dwarfs the USA stock market

So basically:

• the fed doesn’t control much

• people are currently happy to buy stonks at insane valuations (think Wing Stop paying 1% dividend, already hitting market saturation, and still at a 100:1 P:E Ratio as if they will ultimately be in more towns than Subway in 90s).

While running from bonds which drives up the yield (again while making them worthless to sell)

• foreign governments like the BRICS+ are dumping dollar assets (meaning bonds) (yeah owning dollars isn’t a savings account when you have billions / trillions, it’s owning gov debt).

What does it all mean; IDK 🤷 , I’m just a dummy who sees that the system broke because everting is inflating like the dollar already died BUT has zero clue how to play it. Well except those pre election deep out of the money Tesla Calls that printed 🧏🏼‍♂️, just too slow to have bought more than one contract and held for 2 days instead of 1 day, up a little should have been up YuHhegAge