It is a difficult balancing act; take Yellen now: she wants to tell the market that a Fed rate hike is coming but does not want to panic them into it with an actual date and cause a chain reaction, crashing investors out of their position in a sell-off scramble… Given how overleveraged the US equities are (just look at the S&P 500),
it would take very little spark to light this gunpowder store-room!
So Yellen has to ease the markets into it and has been giving plenty of time to reassure the markets that, if needed, the Fed would consider measures of support beyond the end of QE (e.g. asset purchases)… This way, a market panic is avoided and the grounds are laid for the first rate hike… easy does it, slowly, slowly…
That is the skill of a great central banker’s press speech… Yellen is masterful… she knows how to handle
those Reuters, Bloomberg, FT, Sole 24 ore, business Zeitung and CNBC questions
Hard to disagree with this. But I don’t think it matters much because in the end, a decision has to be made and those who weren’t keeping up will [I]still panic[/I] even though it’s (somewhat) already priced in.
Or she could just be like Monsieur Draghi and his ECB gang and wake up one morning and decide to surprise the market with a rate change.
But understandably, they try not to sound overly bearish or bullish when they talk. It’s the investors that decide to pick and choose from their speeches and create the strong reaction. For example, RBA Stevens has been saying the AUD is historically high for years now lol. Sometimes it creates a bearish reaction, other times, it doesn’t.
Awww… You’re Welcome It is our pleasure to help out in anyways we can.
I think, this is a great place where you can speak your mind out and hope that other people think the same or atleast learn from it. Truthfully, I am learning more each day of what other people are posting. There are so many things that I didn’t know…
I will try to post more meaning full thoughts. I said " try" because I cannot promise anything lol
Thank you and I wish you and your family great success in life!
Good advice can be hard to come by–“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”
Real [B]optimism[/B] is aware of problems but recognizes the solutions, knows about difficulties but believes they can overcome, sees the negatives but accentuates the positives, is exposed to the worst but expects the best, has reason to complain but chooses to smile
We have some really good quote here, and here is another one: “Wide diversification is only required when investors do not understand what they are doing.”
The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor.
Jesse Livermore
