Today I took advantage of the Election rally to sell half of my Small & Mid Cap indexes. There might be a Santa Clause rally but as I previously mentioned, I’m concerned about the Fed’s overreach with a terminal target rate of above 5%. While my favorite form of government is Stalemate, I don’t think that will trump a heavy handed Federal Reserve.
So for now, I’ll park my money in a nice safe cash equivalent money market fund and wait to see if this Market goes up, down or sideways. Speaking of which, last month’s scary chart showing correlation with the 2008 Financial Crisis is continuing to play out. We just need an “event” to precipitate the crash.
I’m not very creative, so this isn’t much of a black swan, since it already occurred in 2011 & 2013 when the USA’s credit worthiness was downgraded…but imagine a world if you will, where in the Spring of 2023 the Federal debt exceeds $31.4T and the Congressional Republicans refuse to raise the debt ceiling.
My apologies to the podcast audience…I’m extremely busy and have an unrelenting travel schedule. New content will be posted soon, along with a much overdo video from the final phase of the 2022 Post-Pandemic road trip.
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