FED new policy…same as the old policy

I know it’s fashionable to be worried about the stock market.  I’m not.

One of the main emotional drivers is that the Federal Reserve has tightened its monetary policy and that interest rates are going up.

Attached is a chart of the FED Funds rate going back to 1954.  The RED line indicates estimated interest rate increases through 2024.

Despite the media hysteria, I don’t see a reason to panic.  The range looks very similar to what we saw 67 years ago and certainly no higher than the peak over the past 13 years.

So…I’m not worrying, I’m enjoying the Christmas holiday.  I wish you the same.

 If you find these ALERTs informative, please share them with a likeminded friend AND reference this post on your website or social media channels.

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Reinvesting in these stocks…

The Small Cap index has dropped by about 12% since its November record high…I see this as an opportunity, not a time to panic.

Why am I so optimistic and have been for so long?  Because I believe in the strength and resilience of the USA economy.  Today I uploaded a video on YouTube that explains this year’s turbulence and why things might not be as awful as everyone seems to think.  You can watch it here:

https://youtu.be/zqKjPEJgeDU

The Small Cap Index (RUSSELL 2000) can easily be purchased in a mutual fund like Schwab’s SWSSX.

I generally prefer to own individual stocks, and I’ve taken this dip as an opportunity to add to 62 of my holdings:

CENBHWMJBGSMMMTDGWAB
CDLXFCXHYJPMMUTNCWDC
COFFISVINDAKMIPLABTRIPXLB
CRFLSINGNLMTPLTRTSEXLE
CSCOGDINTCLYFTRLTWTRXM
CVXGSIOSPMARRTXUAXOM
DXCMHGVISRGMEISBUXVLOXRAY
EBHLTITRIMGNISIXVPGYELP
EBIXHTLDIYTMHHSLQTVZ

Should you invest in these stocks?  I have no idea because I don’t know your risk tolerance.  As always, you should consider your options wisely and invest with caution.

 If you find these ALERTs informative, please share them with a likeminded friend AND reference this post on your website or social media channels.

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Black Friday Stock Market SELLOFF…an early Christmas present

If you’re concerned about the Black Friday stock market selloff, then take a deep breath and consider the following:

For the past 21 months, the Media has vacillated between two mutually exclusive narratives-

  • COVID would squelch demand and thus crash the stock market.
  • Inflation would cause the FED to raise interest rates, which would squelch demand and thus crash the stock market.

Neither narrative has proven true, as the stock market climbs to a new record high following each fear induced dip.

I believe the same will prove true of Friday’s Omicron panic attack. This is likely a great entry point, especially for ReOpening type stocks that got crush.

 If you find these ALERTs informative, please share them with a likeminded friend AND reference this post on your website or social media channels.

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Halloween was a TREAT

Well the media narrative about a Sep-Oct stock market crash was WRONG…again.

October was the BEST performing month for the S&P 500 since November 2020.  Even better, today the RUSSELL2000 closed just a fraction below its 3/15/2021 high.

I remain extremely optimist that the COVID90 portfolio & ReOpening stocks will maintain momentum through yearend, and for now have no plans to take profits.

All the negatives- Supply Chain Disruptions, Inflationary Fears, Persistent COVID, FED Taper…are just pushing sales into 1st Qtr 2022.  So, I know it’s early, but…it’s beginning to look like a great CHRISTMAS.

 If you find these ALERTs informative, please share them with a likeminded friend AND reference this post on your website or social media channels.

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