FED will continue to drop interest rates

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date FED will continue to drop interest rates Robert 08-20-2007  Re: FED will continue to drop interest rates joetaxpayer 08-20-2007  Re: FED will continue to drop interest rates Dave Dodson 08-20-2007  Re: FED will continue to drop interest rates Will Trice 08-20-2007  Re: FED will continue to drop interest rates bondguy1824 08-21-2007  Re: FED will continue to drop interest rates Mark Freeland 08-21-2007  Re: FED will continue to drop interest rates rick++ 08-21-2007  Re: FED will continue to drop interest rates Will Trice 10-02-2007
Posted by Robert on August 20, 2007, 8:43 am now that the overnight is at 5.75, long term rates will be cut to 5.0 next month and from there, they will drop again to 3% or lower bonds will take a hit Posted by joetaxpayer on August 20, 2007, 9:14 am Robert wrote: > now that the overnight is at 5.75, long term rates will be cut to 5.0 > next month and from there, they will drop again to 3% or lower > > bonds will take a hit Rates fall, bonds' value rises. Generally speaking. Anything else would be an anomaly. JOE Posted by Dave Dodson on August 20, 2007, 9:15 am > now that the overnight is at 5.75, long term rates will be cut to 5.0 next month and > from there, they will drop again to 3% or lower > > bonds will take a hit Hmmm. Generally, if interest rates go down, the price of bonds goes up. Why do you think bonds will go down? Dave Posted by Will Trice on August 20, 2007, 10:44 am Robert wrote: > now that the overnight is at 5.75, long term rates will be cut to 5.0 > next month and from there, they will drop again to 3% or lower > > bonds will take a hit I'm still waiting for the "very significant correction". We could still get there... -Will Posted by bondguy1824 on August 21, 2007, 5:19 am > now that the overnight is at 5.75, long term rates will be cut to 5.0 next month and > from there, they will drop again to 3% or lower > > bonds will take a hit What bonds are you talking about? Joe is right, and as the WSJ is so quick to point out, bond prices move inversely to interest rates. Similar Threads Posted Has the Fed Already Lowered Interest Rates? August 16, 2007, 8:06 am How hedge interest rates? April 6, 2008, 9:15 am Finding the best savings interest rates May 27, 2007, 8:14 am How to capture higher global interest rates November 25, 2006, 10:36 am Historical data for interest rates given by money market funds? October 18, 2008, 8:25 am Compare tax deductable interest rate to non-deductable interest rate March 5, 2007, 12:45 pm Interest tax deductions April 28, 2008, 10:52 am Should I care when CDs pay interest? October 7, 2008, 6:57 am LOOK ME:) - question about banks, interest % :) November 12, 2006, 3:44 pm Low interest credit card December 12, 2006, 10:23 am