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Tuesday, September 13, 2016

The Fed Conspiracy

"People love conspiracy theories." ~ Neil Armstrong

Here's my Fed conspiracy theory:   Despite guidance to the contrary, the Fed won't be raising interest rates for the next few years.   The Fed will continue to keep jawboning about raising rates to keep exuberant asset bubbles from forming, but will continually find a reason not to do so when the time comes.

If the Fed really intended to raise rates, it could have done it by now, several times given the relative strength of the economy.  So I don't believe the Fed really wants to raise rates.

In the meantime, I will use the volatility caused by the Fed jawboning to purchase good dividend paying stocks as they decline and to lock in higher interest rate on long term CDs.

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This is not financial advice. Please consult a professional advisor.

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