Laughing Donald Trump

Lets see if the trade war was worth it. I think Trump knows not to buckle down under china. The consumers(us) hold the power.

The Fed raising interest rates is the cause. The said the economy is overheated.

I'm not an expert, but does that mean because of higher interest, more people are taking money in stocks and putting it in the deposits that you get interest from?

Searching for higher yields is why people invest in stocks; banks pay dick.

When rates go up, some move to banks because lower stocks drive some to seek safer investments that still have an acceptable yield. Bank rates have been artificially low for the last 10 years. Rising rates from the fed are actually getting banks to slowly raise their rates, which is attractive to conservative investors (i.e., people close to retirement).

so how does feds raising rates plummet the stocks? I am actually asking cuz I dont get it

Raising the rates is a way of throttling down the rapid rise of the economy. Too fast is dangerous so the Fed uses this tool to control inflation and ward off disastrous corrections. They've gotten pretty good at it over the last 30 years, learning from each bear and bull market. During the George Bush economy, the average rate on new homes was around 7% and it was considered normal. Now people are freaking out over 5%. The rate increases also influence bank loans, credit cards and anything that requires credit, so when there's even a rumor of this rate going up, people who are invested in the market either panic, dig in, or find ways to move money to areas where higher rates benefit them. Most of it, in my opinion, is an emotional reaction that mitigates itself when people calm down. Long term investors like myself just shrug this stuff off and buy more when the market is down, because it's like a really good sale, buying cheap and reaping the benefits when everything calms down. It has very little to do with presidents and more to do with consumer confidence, which is very easy to manipulate. Stock market is only one of several indicators as to how the economy is doing, and it's usually misleading when compared to unemployment, GDP and consumer spending.

Now I get it. The fed demands more interest on money it loans to the banks, and that causes banks to raise interest on their loaning.

It has to do with inflation, borrowing and bonds. Not sure about the exact details.
Check it out on Google.

Maybe he can also sell ice to Eskimos.