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The Fed meets again on June 28th and June 29th. Oh boy. I cannot wait. For the next 4 weeks or so, we will hear endless chatter handicapping whether or not the Fed will pause or keep on jacking up interest rates. Friday's soft jobs report drop-kicked the 10-year Treasury from 5.1% to a hair under 5.0%. In sympathy, Fed Futures dropped anchor all the way from a 70% chance of another Fed hike to a 48% chance. Given the volatility of inflation-related data, 50/50 should be the best guess that anyone should dare commit. Yet, speculate, banter, and debate we will because otherwise we will be forced to watch the grueling madness of the market's knee-jerk reactions to each bit of volatile news. There are several articles I found interesting and insightful that I thought you should take a look at while you wait out (or ride) the market's latest madness. They all happen to be from TheStreet.com:
However, you should note that the growing tensions over Iran's nuclear ambitions are real and drama in this region can flare at anytime to snare and consume any plans of rest and relaxation you may have for your investments. For the oil bulls, take careful note that all the folks who know keep telling us that oil inventories are building at a rapid clip. The latest note came from the Saudi oil minister himself, Ali Al-Naimi. Inventories are building so fast that the producers who are trying to take advantage of today's high prices are finally starting to have a harder time finding buyers. Add to this the potential that the Fed could finally apply the brakes to the U.S. economy (and thus crimp the global economy), and you get the very real possibility that oil prices could take a sudden and swift, albeit temporary, downward correction that will make May look like recess in an elementary school. While I suspect such a correction would mark a banner buying oppportunity, you will not be ready to buy if you come into the calamity a die-hard and stubborn believer... In the meantime, be careful out there...! |