April 9, 2020
In January, President Trump called on the Federal Reserve to implement negative interest rates. Recently, yields on 1-month and 3-month Treasury bills dipped below zero on their own, without formal action by the Fed. Socionomists have long noted that rates set by the Fed follow changes in the T-bill market, so will the Fed now drop its rate below zero? Even if that happens, is there a consistent message for the stock market? As Robert Prechter noted in The Socionomic Theory of Finance, interest rates fell in the four biggest stock declines of the past 100 years. And during the bull market of the 1990s, when interest rates rose, stock prices tripled.
In fact, there have been times when stock prices and interest rates went down together, times when they went up together and times when one went up while the other went down.
To learn more, watch the video “Investors Can Relax About Rising Interest Rates–Here’s Why.”
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.
The Socionomist enables you to see trend-shaping waves of social mood, as reflected by the stock market — and capitalize on them. The April 2023 issue looks at negative social mood’s influence on the tumultuous history of the Mexican Revolution. Mood Riffs topics include President Joe Biden’s reelection prospects, challenges facing corporate giants, the new workplace trend known as Bare-Minimum Monday, and British Columbia’s effort to relax laws governing hard drugs. Read the April issue when you become a Socionomics Premier Member. 
