Message from Jon
The Fed last week decided to take the quarter off and freeze rates for the time being.1 This gave a renewed interest in risk, and therefore, stocks. I thought there might be a possibility of the risk of this happening for a few reasons...
- The Fed NOT raising interest rates
- The Tax Reform act of 2018 actually playing out as advertised and benefiting those intended
- The Trade War discussion being solved faster than anticipated and with fewer casualties
Of course, those are my own opinions, and anything could happen, however, those represent what I think are the pressing issues the markets are dealing with outside of BREXIT at the moment, and since the markets like known vs unknown, should any of these items become known, if even temporarily, the market players will then know where and how to place their bets.
However, this does not replace the issues I think we will begin to face later on in 2019 of which I am concerned: the creeping forward of the whole presidential campaigning and the significant rise of volatility, and again, unknowns of politically where we will stand in November of 2020.
At this point we are cautiously entering into the equities side now and buying down on positions as well until the conditions warrant another change.
We will just have to wait and see!
Markets Gain Again
WEEKLY UPDATE - FEBRUARY 4, 2019