I encourage investors and traders of all asset classes to just take a minute here – and listen up.
As much as I understand you’ve likely got a BBQ to tend to or perhaps a Birthday party for your dog, this will only take a second.
The annual Jackson Hole economic symposium, a three-day conference in Wyoming begins on Aug. 21st where The Fed meets each year for the continued discussions of world domination,fashion tips for bankers,entertainment news, and of course – monetary policy.
This time it’s going to be different. You need to get this on your radar.
Risking complete and total repute ( if they’ve still got any left at all ) The Fed is finally going to “actually say something” with respect to letting some of the “hot air” out of this ridiculous stock bubble.
With the bond buying set to “end in October” Yes! END IN OCTOBER! This will only give investors a few short months ( more like 6 weeks ) to re-evaluate their current holdings / consider taking profits and head for the exits in an “orderly fashion” as interest rates are set to rise much sooner than most have been anticipating.
Now you ask me well……”How does this affect me Kong?” “I own Apple! One of the greatest companies on Earth…I can’t imagine anything The Fed says having much to do with them?
Listen.No stock survives on its own accord when “global risk for appetite” wanes. No stock.
When large institutional investors ( those that dwarf your portfolio by 10,000x plus ) start looking at investments where “higher interest rates” come at them like a dull knifes in the kidneys – trust me.
They sell.
You can’t boil this down to single days trading, or even a single week or month when you are staring dead into the eyes of such a “fundamental shift in monetary policy” and it’s far-reaching effects.
Housing, equities, credit / loans, dog food, birthday presents, beer, Apple and “everything else on this planet” that has been pushed along by way of “massive injections of liquidity by Central Banks” will very soon feel the effect of having that taken away.
The Fed hopes the exit will be in an “orderly fashion” but you know yourself best. You’ll hang on “just like the guy next door” thinking you’ve got this figured out and that “just one more day er two” and then I’ll cash out – that’s what I’ll do. Smart.
Doesn’t sound “too orderly” if you and the guy next door, and of course every investor on your block are thinking the same way now does it?
Everybody always runs for the exits all at once…..and everyone is always, always too late.
Watch for news surrounding the Jackson Hole Meeting around August 21st. You won’t want to miss it.