The Fed, Interest Rates And Stock Prices

Us Stock MarketAfter experiencing its first technical correction of 10% since 2011, the U.S. stock market has bounced back from the lows it reached on Aug. The reality is that stock market has already reached a saturation point with stock prices severely overvalued at present. We have seen this phenomenon happen again and again in the past when trillions of dollars’ worth of investment by millions of investors has been wiped out within a matter of seconds as stock market prices plummeted to reflect their true value. Add increasing corporate bond yields to the equation and we should be bracing ourselves for an imminent stock market collapse that would wipe out large portion of investors’ equity wealth. Inverted yield curve represents slowdown in economic growth that eventually leads to stock market decline.

The last time yield curves had inverted was in August 2006, which provided advance warning of the recession that officially commended in December 2007. It makes sense now more than ever to diversify your portfolio and hold alternative asset classes to include gold and silver to dampen the effect of stock market volatility. If you follow our daily market updates, you will be in the minority as to when to purchase these precious metals at the bottom.

We have been experiencing an extreme” Bear market the last 4 years and 9 months which based on the XAU has this asset class declining 82%. Ever since the launch of the first iPhone in June 2007, Apple has outperformed the stock market before and after product launches. Gone are the days when only experienced professionals submited photographs to the photo stock agencies.

And with most of Apple’s new products being complete flops , it’s unlikely there will be any major upsurge in Apple products any time soon. Even though Apple is just one company that makes up the S&P, past history shows that if even just it goes rotten, it can spoil the barrel. With today’s markets akin to a dry powder keg waiting for a spark – where even a small rate rise could bring down global equity markets – imagine the awful consequences of a falling Apple stock price. The market for Microstock pictures is not about selling your greatest sunset photo’s or sensational lanscapes. Instead you must lean what the market wants, and what will sell in big numbers.

Yes it would be great to earn big from your hobby, but on the other hand it’s also fun to see your images online and selling, and also using your wits and skill to devise saleable photos for this market. Study the subject, learn all you can about the subject of stock photography and what’s wanted and in demand, and you should be able to eventually build a signifacant income, that continues to grow into the future. The good news is that almost all (recent) digital cameras are capable of producing decent stock images of the required quality. I work 30 hours per week at the school and am still able to run my eBay business.

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