President Harry Truman would get frustrated with his economic advisors because they would always vacillate and hedge their forecasts with comments like: “it depends” and “on the other hand”. Truman would get so mad, he’d shout, “Get me a one-armed economist ! “
Today I could have used a one-armed strategy. My gut told me that this week’s Federal Reserve announcement will placate Wall Street enough to overlook the instability in China- thus the market is likely to rally above 2050 points on the S&P500.
ON THE OTHER HAND…my gut senses a short-lived “suckers” rally. The market has broken long term support and Institutional Investors haven’t come in to “buy the dip” as they have in the recent past.
Mid-morning I was prepared to buy an overweight position in the S&P500 index…but I fought back the impulse with a slightly stronger conviction to error on the side of safety. I might have just missed the year’s best buying opportunity.
Was that an act of cowardice or a display of wisdom? Time will tell.
———————————————————————————————————–
Listen to the Wealthsteading Podcast to receive updated market commentary:
The 10 Wealth Building Principles can be heard at:
http://www.wealthsteading.com/category/wealth-building-principle/
Subscribe to the Wealthsteading Podcast:
via iTunes: https://itunes.apple.com/us/podcast/wealthsteading-podcast/id896417058
Building Wealth, Investing, Retirement, Stock Trading, Freedom, Liberty, Life, History