Traders Exercise Caution Ahead of Fed Meeting

FOX Business ^ | September 14, 2015 | Victoria Craig

[citizen]

U.S. equity markets were lower Monday morning as traders anxiously awaited this week’s Federal Open Market Committee meeting.

As of 9:50 a.m. ET, the Dow Jones Industrial Average fell 81 points, or 0.50% to 16350. The S&P 500 shed 8 points, or 0.45% to 1952, while the Nasdaq Composite declined 16 points, or 0.33% to 4806.

Today’s Markets

Wall Street waited with bated breath for the outcome of the Federal Reserve’s two-day, policy-setting meeting this week, which begins Wednesday and ends with a statement on monetary policy the day after. In recent weeks, forecasts for a September rate hike have been ratcheted down to December, or even as far out as March of 2016 thanks to volatile global markets, and uncertainty about how turmoil around the globe could impact the U.S. economy.

“I see a rate hike on Thursday as unlikely given sheer size of moving parts including a mid-selloff stock market, a waning Chinese economy, and multi-year lows in oil with an associated impact upon inflation, jobs, and U.S. growth,” Joshua Mahony, IG market analyst, said in a note.

[citizen]

I'm guessing no hike.....keyword is GUESSING. China still slow and there was not the expected government intervention there.

[citizen]

ALSO: US Equities Give Up Friday ‘Panic-Buying’ Close Gains
http://www.zerohedge.com/news/2015-09-14/us-equities-give-friday-panic-buying-close-gains

[citizen]

AND: Fears grow over US stock market bubble
http://www.cnbc.com/2015/09/14/fears-grow-over-us-stock-market-bubble.html

[Leaning Right]

I'm guessing no hike.....keyword is GUESSING.

My Tarot cards agree with you. Putting off a hike will cause damage down the road, but no hike will be soothing in the short term. And as we all know, today's policymakers never look at the long-term.

[DannyTN]

That’s my guess too. No hike. The employment data went south and that is Yelzin’s primary focus. And it is supposed to be her focus as stated in the law that created the Fed.

Yelzin doesn’t have control over trade. But she should have been advocating what Trump advocates. All the fed can do is put give an infusion of liquidity to help spur innovation. But it does nothing to stop the off shoring hemorrhage.

[HLPhat]

Quack, Waddle, BOHICA.

[citizen]

I'm hoping they go ahead and raise in the spring if not before. It needs to get done. At my age, I am looking to safety first so my savings are in a bank MM fund. The 401k is split sticks-bonds-MM.

So I get whacked either way:
Raise rates and gain a bit of interest income but 401k suffers, at least for a while.
Don't raise and maybe stocks do better but I get no additional savings interest.

[citizen]

Yelzin doesn’t have control over trade.

LOL My first thought was "Boris Yeltsin! What, is he back?!"

But yeah, Janet and the FED should be just taking care of their own business but they can't now, not since Bush, Paulson, Bernake and 0bama put us on and kept us on the QE road. They must try to unwind all of it and good luck with that!

[Leaning Right]

I suspect that you and I are roughly in the same position, age-wise and market allotment-wise. Like you, at this stage I'm more interested in capital preservation than in anything else.

So I'm thinking about putting almost everything into a good short-term, high-quality corporate bond fund, then go fishing.

[citizen]

Oh that’s right. Some guy at Zero Hedge I think it was recommended corporate bonds. I’ve been meaning to look into that.

[Leaning Right]

I'm no expert, but I'm sticking with the short-term end of the investment-grade corporate bond world.

I won't get the yield of the longer-term bond funds. But any interest rate increases won't hurt me as much either.

And don't forget the most important piece of the puzzle: Once you're done re-balancing, go fishing. Old proverb: A man is given only a certain number of days on this earth. But a day spent fishing does not count against that total.

[citizen]

Then fishing it shall be!!