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Daily Market Update – December 13, 2016 (7:30 AM) The FOMC begins its 2 day meeting today and we all know what is going to happen. That is, unless of course, the FOMC decides to be proactive and not simply reactive. If that would be the case, look out for a barrage of vitriol laced Tweets from President-Elect Trump. It’s not very likely that the FOMC would announce anything greater than a 0.5% rate hike, but if it does, all will break loose. No one wants that, which may be exactly why that should be what is done. With all of the discussion of infrastructure building and the likelihood of increased demand for oil, coupled with everything else going on in the economy, someone, somewhere is going to be thinking about inflation in the way we used to think about it. Besides, the FOMC is really late to the game as the natural market forces were there first. I don’t expect it to be a factor in what I do this week, but I’m actually happy to have my cash level as high as it is at the moment. I may still have some interest in spending some money before the week is over, but not too much. I’d be much happier finding something to do with all of those positions expiring this week. I’ll leave the rest up to the smart people in the FOMC meeting over the next 2 days. . |
