Place Your Bets for Wednesday!
Investors have been weighing and re-weighing the odds of a Fed rate hike in September. Now the moment of truth is upon us at their 2pm ET announcement today.
Right now the market is only pricing in an 18% chance of rate increase. So yes, investors would be shocked and horrified if the Fed did make the move this early.
I sense the market has it right about the Fed staying on the sidelines once again this month. However, I do expect them to come out with much more aggressive language that a rate increase is likely on the way soon (like November or December).
If indeed the Fed ups their hawkish rhetoric, then I would not be surprised in a negative market reaction in the short run. I know that our very own Jeremy Mullin welcomes that event as another chance to buy more great looking stocks on the dip.
You see, Jeremy heads our Counterstrike portfolio. By its very nature this portfolio is designed to wait for short term imbalances that push down the prices of even the best looking stocks. Then Jeremy swoops in to buy them on the dip for some of the most timely trades around.
If this type of fast action trading interests you.
