In a sign of just how delicate markets are and how soft the delivery of information needs to be, this week we believe, Janet Yellen whispered to market participants ….
Here is how:
Shhh, Interest rates are too low guys
From this “Research Paper” (subtle press release maybe) :
- This from a Dovish (less likely to increase rates) San Francisco Federal Reserve Bank
- Wall Street you are underestimating the likely increase
- Increases may come faster than you expect
- Rates may currently be lower than they should be
We will save you the chart as it is a Friday.
Talk about reading the Teas leaves.
Oddly, this report, again from a Dovish FED President (makes all the difference in the world) has moved rates higher than any recent economic or geo political risk relief could ever do.
When Janet speaks … even subtly … people listen…
Back to Normal Next Week
When market participants are away or only skeletal crews are running “Wall Street” we tend to get close to the vest as well. Trading volume is picking up and email/phones are beginning to be answered again.
This puts us in a more comfortable position making adjustments. Expecting a bit more movement in our portfolios in the coming weeks than in the last several would be our guess, of course we never adjust unless we need to, but we have more confidence when the “Wall Street theatre” is full, rather than empty as it has been for some time.
Have a Great Friday!
John A. Kvale CFA, CFPhttp://www.jkfinancialinc.com http://www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225