Don, the 1982 stock market launched AFTER the FED began lowering rates. The market did rise for a time when Volker started raising rates, but eventually it succumbed to the high cost of money as the US fell into two back to back recessions. Those recessions broke the back of the runaway inflation. It was only after Volker started lowering rates in 1982 that folks rushed back into the stock market. That's what kicked off the bull market then and what is powering it today.
Unlike 1982, today the Treasury prints the debt and the FED buys it, all of it, if needed to hold rates down. There are no market forces at work due to the dollar's reserve status. The US has the lowest real interest rates in its multi-hundred year history. To see what happens if you try to print without having a reserve currency, take a look at Turkey. Erdogan is trying to print his way into prosperity and is killing his non-reserve currency and causing massive inflation.
The US stock market is running on luck, the good luck of having a reserve currency, but that luxury can be snatched away as it was for the Dutch and later the British. The American largesse will only be tolerated for just so long. Volker seemed to understand that, Powell doesn't appear to have a clue.
The plot of the FED funds rate below is from macrotrends.net .
Inflation is once again on a tear. Powell needs to channel Volker to get it under control.
Regards, f
Douglas
LUCK????? LMAZOFF
675 ono luck.....hahaha looking backward is easy anybody can do it.........looking forward is harder for some
https://www.siliconi...?msgid=33615802
Must be hard to look forward as you're looking back all the time