Still Believe Rate Hike In 2015?

Look at the chart for the 20+ year treasury bond ETF, TLT. Do you still believe the FED will raise rate in 2015? The market doesn’t believe it will. Pay attention to the Q4 projections & guidance from companies reporting their Q3 earnings. Watch and listen for these key words; “cost reduction”, “reduce spending”, and the dreaded “workforce reduction” or “R.I.F” (Reduction-In-Force, a more politically correct acronym for ‘layoff’). The US economy is not ready for a rate hike, and the FED knows it. Its talk about a possible rate hike this year is just rhetoric.

(click on the chart to enlarge)