Emerging Money Daily Audio Call September 9 – More Fed = more volatility and this morning we added to the chorus of speakers telling markets that US rates have bottomed(we agree).
What are the implications for stocks from the Boston Fed Rosengren’s salvo that says we don’t care about a weaker August payroll number? What was more concerning about today’s Fed message was not that the Fed wants to move despite data that may or may not support a hike or two.
The greater concern is that he (may have) indicated they could be thinking more about a rate hike cycle than “getting off a hike or two” in 2016.
The SPX is not cheap and Consumer Staples and other low growth stocks remain vastly overpriced but some stocks remain extremely attractive on valuation and this is the message for now and the allegory for investing overall. The market gives you opportunities along the road that are not measured in broad term market performance. Don’t listen to those who tell you that owning equities for the last 18m has been a dead end and an exercise in under-performance versus other asset classes.
This is not only factually incorrect but removes the emotions attached to market players selling everything or calling for such at key levels significantly below today’s (sideways) market. It also divorces from the reality that investing in bonds during this period often after 3 sigma moves lower in yields has been arguably much riskier.
Tune into your account for some investment perspective…have a great weekend.
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