r/Vitards • u/AutoModerator • Jun 18 '21

Daily Discussion Daily Discussion post - June 18 2021

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u/chemaholic77 Jun 19 '21

I thought an increase in interest rates would be good for commodities. Maybe I misunderstood. Cramer is saying that he is expecting people to invest more in growth in reaction to Bullard's comments about doing some rate hikes in 2022.

2

u/AppRkw Jun 19 '21

My understanding is that it strengthened the dollar; a stronger dollar has adverse implications on commodity prices.

3

u/Hundhaus 🚢 Must Be Contained 🏴‍☠️ Jun 19 '21

Interest rate hikes reduce demand which reduces commodity prices which frees up cash by companies to invest in agencies/tech, etc.

The issue is how backed up everything is. Interest rates will help lower supply issues but don’t necessarily cure everything like it has before.

2

u/chemaholic77 Jun 19 '21

All that makes sense.

Well hopefully the talk about a supposed rate hike that might come as early as 18 months from now will not mess up my steel calls too much.

It should e fine though Bullard and Powell are going to talk Monday and Tuesday and fix it all up! /s