MARKETS TODAY @1 PM EST
Sept 16 (Vica Partners) Dow up .03%, S&P 500 up .01%, Nasdaq down .04%
Markets spin today following the worst week in 3 Months as they await the Federal Reserve’s two-day policy meeting on Sept. 20-21. Analysts expect the central bank to deliver a third-straight 75-basis-point increase. Traders are betting the Federal Open Market Committee will hike by 75 basis points Wednesday and signal rates are heading above 4% and will then go on hold
Don’t expect a Fed policy surprise, that plan has not changed just the headlines
Don’t expect a Fed policy surprise as swap contracts that forecast rates over the next two years now peak at 4.5% in March 2023, a full point higher than was expected after the last meeting in July.
In the bond market today yields continue to rise but should balk off shortly
The benchmark U.S. 10-year Treasury is at 3.49%, its highest level since 2011, while the 2-year Treasury note at 3.9% is at a 15-year high.
Wall Street is cutting forward earnings expectations however investors see opportunity
FedEx (FDX) on Friday withdrawing its full-year guidance on macroeconomic trends that have “significantly worsened.”
However… our “behavioral” security buying studies indicate positive investor sentiment. The consensus finding for investors is that market has priced in most of the Federal Reserve inflation based hikes and current valuations have upside.
Solid strategy for these type of market days ….
Try to ignore the fear based daily news headlines and focus on long term investing goals. To date our private fund is up close to 40% Year to date as there is ample opportunity in the markets.
Investors… we suggest investing in companies that have solid balance sheets and offer dividends. Long to the long term for companies that have sustainable competitive market advantages.
Best to continue to cost average buy value stocks and resist most all tech and growth stocks where companies have negative margins. Our teams a negative 12%-15% valuation correction for speculative stocks.
*** Energy is the Top Performing Sector in S&P 500 Year to Date
