My weekly talking points are snippets of ideas that are pertinent to today’s markets. They come from my readings, American history background, and from 30 years’ experience trading and investing in the American Capital Markets. They are designed to help you improve your investing results and get beyond the flood of information (we call this noise) from the media, most of which is counterproductive. Review these periodically, they may improve your investment success.
1. The Federal Reserve has signaled that it will likely raise interest rates at its December meeting.
2. This will be the first increase in nearly 10 years.
3. The financial markets are slowly coming to grips with this change.
4. Last Friday’s jobs report showed increased hiring which is the immediate cause for the increase.
5. The idea is to increase interest rates to prevent inflation from gaining traction.
6. Interest rates have a major effect on the economy as they determine consumer buying decisions.
7. They also have an effect on corporation’s cost of doing business.
8. To the extent that this reflects an improving economy it is a good sign.
9. As long as future rate increases are gradual, the markets are likely to maintain a positive bias.
10. Portfolios will have to be adjusted to reflect the new reality.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations of any particular security, strategy or investment product for any individuals. Information contained herein has been obtained from sources believed to be reliable but not guaranteed. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.