When will the Fed raise interest rates - Tactical Investor
When will the Fed raise interest rates

When will the Fed raise interest rates

When will the Fed raise interest rates; the answer to that question is who cares

When will the Fed raise rates

 

The mass media serves only one purpose; if you thought it was to inform you of what is going in the world or the markets. You are dead wrong..  In general whatever they are advocating, taking the opposite stance will lead to a far better outcome, than following their advice.

Last month, we stated that the noise being made about the possible Fed hike in December was total and utter rubbish.  It should be treated as a non-event, instead of being treated as earth-shattering development. .  The immense coverage the media is giving this topic is totally insane and unwarranted.  It shows us that the press has run of stuff to cover and has decided to focus on this mundane issue by creating the illusion that a terrible event is about to unfold.

Secondly, the bears are screaming about another market meltdown, even though their record so far is dismal at best.  How boring this gets; they utter the same stuff over and over again and hope for a different outcome.  Probably the title of imbecile is more suitable than expert. However, that is a story for another day.

Do something different this time. Put the basic tenets of mass psychology into play

Instead of panicking with the crowd, get the bottle of wine, champagne, cognac or whatever it is you like to drink ready, for you might have one more chance to celebrate. Let the fools give into panic, while you break out that bottle of champagne and cheer as the markets pullback. Instead of worrying how low they might or might not fall, you will be focussing on getting into the stocks you wanted to buy but did not because of the price factor.  The Fear that the Fed will raise rates could prove to be the trigger that drives the markets lower.

Our trend indicator is bullish on the Dow and it has now turned bullish on the NASDAQ, and we have back tested this indicator extensively and  the market has never crashed while it is in the bullish zone.  We have also tested in real time as you have seen for the past few years and you all know the results. Not once did we panic at any point during the recent market selloff. In fact, we encouraged you to celebrate last time before the markets pulled back, just like we are doing now.

All pullbacks should be viewed as buying opportunities; the stronger the correction/pullback the better the buying opportunity.

No bull market has ever ended when the masses are panicking.  More than six and half years into this market and  the masses are still sceptical and generally view this market in a negative light and that means the market will trend higher.  The latest AAII sentiment report shows that over 42% of individuals are in the neutral camp; you know how we feel about individuals in the neutral camp.  This camp is composed of bulls with no balls and bears with no teeth. More individuals are in the neutral camp then either the bullish or bearish camp.  Conclusion, the masses are not euphoric.  Remember what we say today.   This market is going to go a lot higher than even the most bullish of bulls can imagine and the bears are going to get clobbered.

In a recent report, two high level executives at Schwab stated that when they speak to their clients, most of them are from bullish.  Sonders and Kleintop stated that in general investors are far from bullish.  The flow of money clearly reflects this lack of enthusiasm. Investors withdrew more than $125 billion out of equity-based funds this year, and ploughed over $94 billion into bonds according to bank of America, Full Story

 

Other articles of interest:

The Dow Industrials are not going to crash (Nov 11)

Oops we did it again- The Fed is setting up the masses for another stimulus program (Nov 9)

Palladium Bulls are getting ready to sprint  (Nov 7)

Dow industrials set to defy naysayers and trend higher  (Nov 6)

Dow continues to soar, doctors of doom wrong, what’s next (Nov 5)

Dr Copper time to buy, markets & psychological warfare  (Nov 3)

World’s only Adult Index predicts rise in immoral behaviour (Nov 2)

Death Cross is not a bearish Omen for the Stock Market  (Oct 30)

Market Timing Does it work  (Oct 28)

Turkey shot down a Russian Drone  (Oct 27)

Russia, Syria and the Religious war  (Oct 27)

stocks and bonds will not crash in 2015  (Oct 25)

It’s not time to sell the DAX (oct 22)

The Dow is getting ready to Soar  (Oct 21)

why its time to investing in banking stocks (oct 18)

Ignore the Yield Curve- bank stocks are a bargain (Oc 16)