We’re nearly there — tomorrow, the Fed will raise the interest rates – or not! With the tension and talk about the interest rates, I’m ready to say, come on, do it already! It’s just .25 percent. And as with the Fed’s previous pronouncements they will raise the rates gently, and just because of the jobs already strong and inflation is moving to target. Nobody said anything about China. And if they want to move it to December, I’d rather have it now than to ruin Christmas.
Wish it’s that easy. Anyway, here’s all the talk about the negative effect of a rate rise. So Fed, if you’re reading this blog — listen to them! “Doom and Gloom with the Rate Rise”. Yes, I don’t think they should raise rates. The US will certainly be “out-of-place” with the rest of the markets either in recession or struggling.
However, one thing is for sure. These companies, investors and other “borrowers” are not babies. If I am them, they must know the rates will be raised – plenty of warning already with the “taper tantrum” 2 years ago. So how do you play along ? I like it low-risk with a 50% chance of profit, so I don’t position and speculate for this. This is because, like all investments – I might be wrong and most important for me is to trigger my stop and keep my losses small so I can still preserve my investments.
That’s the way of the wise, even with the US market rally last night, it has very thin volume.
I tell myself I have plenty of options, plenty of opportunities and if the risk is too great, I’m out of it!
