Make Money or Gossip About Fed Policy?
What is your purpose?
Like I told Maria Bartiromo last week, every day I watch grown adults appoint themselves to the monetary policy police.
It's fascinating.
But I wonder, these people know they can't hear them right?
Policy makers don't actually care what you think.
It's like when I yell at the TV when Tua for throws an interception or Kyle Lowry air balls another 3-pointer.
They can't hear me. They don't care what I think.
But I do it anyway.
I'll probably do some more of that this weekend in fact.
But that's what I'm there for. I'm not in it to make money. I don't bet on sports. I actually believe I'm part of the team.
And yea I'm a little nuts. But that's ok. At least I recognize it. And I enjoy the time I spend with the Dolphins or Hurricanes or Heat, no matter how frustrating it can be at times.
But that's just a hobby.
The market, as much as I may enjoy it, is NOT a hobby.
It's a business. And investing means being in the business of doing only ONE thing - Profit.
The lesson here is to get your dopamine elsewhere. For me it's sports. For you it may be hiking, or chess.
But to lose money just because, "the fed doesn't know what they're doing" is no way to go through life.
So just think about it.
Make money?
Or gossip about fed policy?
It's up to you.
But did you notice how the Dow Jones Industrial Average just rallied for a 3rd straight week?
Or how one of the largest components of the world's worst sector is breaking out and ripping to new 6-month highs?
How about the fact that fewer and fewer stocks are able to go down in price?
Look at this chart where you can see the most important sector rotation in America taking place underneath the surface.
With lower lows in price for the S&P500, although for just a brief moment, notice the higher lower this whole time in Consumer Discretionary vs Consumer Staples stocks:
We saw the exact opposite of this coming into the year, when Discretionary was already rolling over relative to Staples, before the S&P500 peaked.
What's wrong with buying stocks that are going up?
Why must we gossip about the fed all day?
What are we even doing here?
Talk to me. Someone please explain to me the benefits of spending time criticizing the fed, or guessing what the fed is going to do next, or sensationalizing words like transitory or pivot, or now "blink" I believe is the new one the kids are talking about.
It's so stupid.
I can't.
Anyway, like I said, we're buying stocks that are going up.
Seems irresponsible not to.
What about you?
Tell me how you're feeling.
- JC