Powered By Blogger

About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Tuesday, September 26, 2017

Stock Market

I have followed the stock market since the late 1960s. I have always been a monetary liquidity guy
who like to buy when the Fed fosters a tail wind for the economy and the stock market through
providing liquidity to the system and reducing interest rates.

Finding market low points when the Fed has your back with 'easy money' has been a top priority
for me because these periods are always low risk / high return intervals. I have always been much
less concerned with trying to call market tops when the Fed has turned restrictive and liquidity
is being squeezed because I usually opt to scale back positions as the head winds intensify.

The Fed is embarking on a historic mission now. It plans not only to raise interest rates gradually,
but to shrink its balance sheet and excess reserves in the banking system. The bulls will argue
monetary policy is still accomodative, but as time rolls along, the Fed will continue to reduce
its balance sheet substantially, and the head winds will only intensify.

I am content with SPX 2500, and at the tender age of 78, I am not well motivated to do the
careful and intense research to figure out when the market will get into trouble. There are lots
of interesting things to do that do not  require such strenuous work.

Here is a link to the monthly SPX. It is overbought longer term, but the important MACD
momentum indicator remains positive.  SPX














5 comments:

Shuaib Ahmed said...

Oh really?I never got to listen about this before .These days I am on essay writing leave so I would must take my family to this resturaunt site.Very nice one.

guillermo said...

My brother is following the stock market since the late 1960s. The instructor gave them http://www.cheaptranscriptionservices.net/reasons-to-choose-verbatim-transcription-services/ as a helping source. He has always been a monetary liquidity guy who likes to purchase when the Fed fosters a tail wind for the budget and the stock market through giving liquidity to the system and dropping interest rates.

guillermo said...

"The Fed is boarding on a historic mission. It plans not only to increase interest rates slowly,
but to reduce its balance sheet and excess assets in the banking system. Just visit this website and you will get to know about a lot more info, facts and statistics. The bulls will contend
financial policy is still accommodative, but as time rolls along, the Fed will last to decrease
its balance sheet considerably, and the head winds will only strengthen. "

Velva Block said...

Having aptitudes in the standard work is very an endowment of God. A person who is very adroit he can do his work autonomous from here other individual. We can do anything he needs to do. He can deal with his issues autonomous from any other person.

Anonymouse said...

Amazing blog post, Before long, you can get all sort of data from our writers that can make all deal with of your endeavor work effectively in truly moderate cost. You simply need to tap on this homepage and complete your piece undertaking.