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How the Market Works

Color Me Unimpressed

Posted by kdadmin on March 18th, 2015.

And so it was.

There was no real change in the interest rate increase language in the Federal Reserve (FOMC) meeting minutes. But, the market still got super freaky (volatile) both before the release and after. And for what? Because the Fed said what they had already said?

To see how this affects you, read on …

Now, more than ever, it’s likely the market will be fickle. We’ve had the double digit growth years. We’ve had the consolidation and cost savings by big companies. We’ve had the crack cocaine of three quantitative easing programs. Now, it’s time to sober up and accept a little bit of the doldrums. The general consensus for the 2015 year is roughly 3-4% gains in the S&P 500.

In other words, huge speculative bets are unlikely to be rewarded.

Obviously, Europe’s recovery in the face of € 1 trillion being pumped into the collective economies is the next frontier, but the full impact of that is at least a couple of years off, and we’ll likely have Greece’s implosion before that. Maybe France will even join the fray.

For those of you who think the next fortune to be made is in rental real estate, be sure to watch my next video before you throw your hat into THAT ring. For the rest of you, sit back & enjoy the show. I’ll keep you posted on our next entry point.

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