Fires! Floods! EARTHQUAKES!!!
That's perhaps an exaggeration of what tomorrow could bring, but it's just as frightening. The Fed will make their rate decision which could cause an explosive session in the markets tomorrow. What many are expecting is that the Fed will drop the Fed Funds rate by a quarter point. Other investors are hoping for a half point rate reduction. If this happens, the market will probably respond favorably.
However, what if there is no change in rate? What if the Fed decides that inflation is a greater demon that needs slayed? This has the horrible possibility of causing a minor market crash. The markets will likely fall fast and furious. I don't propose going to cash, but if I were you, I would wait a few days before investing more in the markets.
Looking at today's action, there is one bright spot. Check out how Newell Rubbermaid is pulling up the Housewares industry. Wow! Earnings forcast is up 2 cents per share for next quarter. That's impressive. Plus, I just found out that Newell Rubbermaid is also the maker of Sharpie markers. I use those all of the time! Perhaps CEO Mark Ketchum can share his market moving magic with the rest of the economy.
Thanks for visiting and please leave a comment.-------Sincerely, Trevor Stasik.
Fed, Market Crash, Fed Funds Rate, Rubbermaid
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