(Posted Thursday morning — Sept. 21, 2017)
Yesterday afternoon, the Federal Reserve –as was widely expected — announced that it would begin unwinding its bloated, $4.5 TRILLION balance sheet. Further — as I had been warning — the F.O.M.C. gave a bit of a comeuppance to those who had been a little too smug in chasing Treasury and precious metals prices higher. . .and the U.S. dollar lower.
To be sure, the initial level of selling off (net) $10 billion a month from the Fed’s holdings is little more than a rounding error. A bit longer-term, however, as this “normalization” gambit continues, there ARE market reactions we can expect that will come well short of an outright “crash.” And there are indeed ways you need to prepare your portfolio for a considerably different environment that’s likely just ahead.
On yesterday afternoon’s podcast I touched on these ways. Further, in the next issue of The National Investor I’ll expand on those thoughts as well as offer specific portfolio guidance for how we will be positioned for a greater “rotation” in asset markets going forward.
Last but not least I’ll be updating Members on several of our “story stocks” that have in recent days been moving on some BIG news!
To listen to yesterday’s podcast and broad portfolio guidance, CLICK RIGHT HERE.