Don’t fight the Fed.
That’s an old cliche.
A huge part of the stock gains in the past six years has been the Fed’s ultra-low (non-existent?) interest rates.
Low interest rates make it hard for many of us to find any place to put our monies — except the stockmarket.
And low interest rates are meant to stimulate the economy, because it encourages businesses to borrow and build. That’s good (?) for companies and their stocks.
So when there’s talk of higher interest rates — as at present — the stockmarket gets spooked.
I’m not concerned. Nor am I going to predict what the Fed may or may not do today.
Here’s “what you need to know” from Business Insider this morning:
It’s a Fed day. The Federal Open Market Committee on Wednesday will announce its latest policy decision. Market participants will be looking to see whether the Committee removes the word “patient” from its statement, signaling that a rate hike may be coming as early as June. The statement will be accompanied by staff projections at 2 p.m. ET, and Federal Reserve Board Chair Janet Yellen’s news conference is scheduled for 2:30 p.m. ET. The US 10-year yield is off 2 basis points at 2.03%.
Personally, I’m going to play tennis.
This is not a day to buy or sell stocks. But I could be wrong! (Go figure.)
Harry Newton who watched Federer beat Seppi last night. Everyone was there because Seppi had beaten Federer, knocking Federer out of the Australian Open in January. Indian Wells Tennis is playing on The Tennis Channel. This weekend are the semi-finals and finals. Federer is playing later today again. Hats off to Larry Ellison for the work done on Indian Wells. Spectacular grounds. Great landscaping. Not a speck of debris. A real pleasure to visit his Indian Wells Tennis Center.
