Waiting for the FED to Speak
By: Tim McPartland,
Well we are at the time when markets are on pins and needles (maybe this is how the market is poised on a regular basis) as we await a statement from the FED meeting on Wednesday afternoon. It is our feeling is that this statement might outweigh the statements of the last few meetings as Yellen has been bound and determined to raise rates, regardless of the economic implications on a global basis, the question is when will it happen. Obviously if there was a rate hike now it would be one heck of a surprise and markets would spin wildly out of control. On the other hand, the more likely scenario, is the statement will be scrutinized very closely as to when rates will be raised–and then when the scutiny is over there will be no real answer to the question. It will be the same old story–‘the decision will be data dependant’. In the end nothing new or different will be known and to a true long term income investor it really shouldn’t matter much.
By now investors should be invested based upon their convictions–typically these convictions will be as accurate as the ‘smart folks’ forecasts and predictions. We are looking for bargains each day and plan to make no move based upon what happens tomorrow.