Too many investment commentators are focused on what will happen today at 2pm ET. That is when the next Fed Meeting Announcement gets released.
Hyper active traders, with nothing better to do, will hinge far too many trades on any clue about when the Fed will start raising rates. The key word that keeps coming up again and again is “patient”. The Fed has consistently used that word in the past to convey that they are in no rush to raise rates.
It is believed that once the word “patient” is removed from their statements, that it will probably be 3-6 months until they actually take action. Kind of like lighting a long fuse in some investors mind.
However, as I shared many, many, many times before, there is not much reason for investors to despair with the concept of rising rates. It truly is a statement that the economy is in better shape and doesn’t need to keep riding on training wheels. Also, and more importantly, the stock market typically does quite well for 2-3 years following the initial raising of rates.
Do not let the immediate reaction to this report sway you from the facts. So even if stocks drop on the news, then you do the wise thing and buy up more Zacks #1 Ranked stocks on the cheap.
Best,
Reity
aka Steve Reitmeister, Executive Vice President
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