Yelling at Yellen

Chief Investment Officer and founder of Aitken Investment Management
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Key points

  • Unfortunately, the lack of “lift off” via a rate rise was made worse by Yellen’s commentary. US equity futures fell for the entire duration of the press conference.
  • The press always reports market loses in “billions” but gains in “points” and there have been plenty of headline grabbing scare stories, most of which will not prove to be correct.
  • In the meantime, keep buying dips in high quality companies and wait patiently for the gloom to lift.

I was sitting up at my trading screens at home very early last Friday morning (4am) waiting for the FOMC rates decision and associated commentary from Federal Reserve Board Chairman, Janet Yellen. What a disappointment it turned out to be.

As a global absolute return fund manager, events like FOMC interest rate decisions are important. This is particularly so after nine years of zero interest rate policy (ZIRP).

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