The next Bull market catalyst is NOT them raising rates—it is more likely to be them announcing QE4. If the Fed raises interest rates in the next few months it could easily throw us into a recession and that would be bad because they don’t have any ammo left in their interest rate gun. The probability of a rate increase decreases by the day, in my opinion.
So, that’s why I have been conservatively positioned over the last weeks and months. Bonds will fluctuate from day-to-day (sometimes as much as stocks) but in the end they go up as interest rate yields drift down. In this environment it is difficult to find growth; the goal during these times is preservation.
On a personal note, I have been visiting my father the last few days. He is 81 and suffers from dementia—what a terrible disease. He is a part of the generation that made America Great and I will always be thankful for the life lessons he taught me and the sacrifices he made to get me where I am today. Have a great weekend and thanks for reading.
Twitter: @JeffVoudrie
Author carries exposure to mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
