We've had two decreases in the discount rate since then but the real cost of money is still very high. I think we're at the edge of a recession if one hasn't already begun. Inflation is running at two percent and interest rates should be lower. When the Fed sees how much the economy has slowed they will lower interest rates. There will be a lot of earnings disappointments because expectations are just too high.
People seem to think that money grows on trees and that the stock market is a money machine.
That's a very long time. I think rates will come down to 5.5 to 5.25 percent. All of this is occurring in a period of extraordinary liquidity for mutual funds. Other market observers, such as mutual fund cash flow watcher and newsletter editor Charles Biderman, expect strong flows of money into mutual funds for all of January. I'm a long term bull on America.