Investing is Funny

Financial Twitter feels like Fed Twitter these days. Everyone is blaming interest rates for the market’s swings right now. I don’t think they are necessarily wrong, but it is a gross oversimplification.

Everyone is putting their hopes in to the Fed, but I think that’s missing the point. Stocks are down because interest rates are up (that’s simple math), but the problem is that if interest rates are going down, that means something else is broken. Right now the real economy is extremely healthy… see unemployment rates. Demand is still high! If interest rates are going down, demand and employment are likely broken too. The reality is you need to weigh all these things, which gets real complicated. Lowering interest rates <> rebubble!

Investing in the macro is about much more than just interest rates, don’t fall for the oversimplification. Or better yet, don’t worry about the macro at all and just keep buying!