Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


This Two-Minute Market Move Could Make You Rich

This Two-Minute Market Move Could Make You Rich[Revealed] How to generate instant income from the stock market. Over and over again. At will. This technique is so powerful – and safe – we’re guaranteeing you can use it to generate $1 million (or more) in retirement cash. And we’ll even send you a $1,000 check to kickstart your journey. Go here for details.


Fed Running Out of Time

By Linda McDonough on August 30, 2016

Like a ray of light piercing the fog, last week Federal Reserve Chairperson Janet Yellen sent out a clear signal to the market regarding the its near term plan on interest rates.

At the committee’s annual policy symposium in Jackson Hole, Yellen said, “In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months.”

Yellen’s statement is as close to a promise as we can get from the Fed. And while her comments may not appear disquieting to some, the correlation between increasing interest rates and choppy markets can’t be ignored. After seven long years of near zero interest rates, the Fed raised the Fed funds rate to one quarter of a point last December and the market wilted.

That small shift upward had little impact for borrowers or lenders, but helped send the market into a tailspin. By mid February the S&P 500 had dropped 10% and investors were starting to sweat. Although the market has recovered all of that drop plus more, conviction that the Fed is marching along a consistent path of rate increases may cause more market turbulence.

With market averages at all-time highs and valuations stretched I’ve been installing bumpers on the portfolios of Profit Catalyst Alert and Growth Stock Strategist to cushion the blow of any drop. Just this week I issued another put purchase recommendation in Profit Catalyst Alert. In Growth Stock Strategist I’ve issued stop loss and buy limits on all stocks to help insulate gains.

Clearing the Fog

The Fed has not always been so forthright with its intentions. In fact, in the 1970’s the prevalent belief was that the Fed should be as vague as possible about its plan for interest rates. It was not until 1994 that the Fed publicly disclosed changes in its target for the federal funds rate. Five years later in 1999 the Fed added a future looking statement similar to the one Janet Yellen put out last week.

Back then investors yearned for scraps of data regarding the direction of interest rates. They would monitor the trading desk at the Federal Reserve Bank of New York for clues about the Fed’s purchase or sale of bonds, which would indicate its desire for higher or lower rates. Later in the 1980’s, huge market swings would occur on days that levels of certain money supply levels were reported, another harbinger of Fed action.

Thanks to sweeping changes that lift the veil of Fed secrecy, investors need not connect hazy dots to determine the direction of interest rates. Yet most Fed chair people offer somewhat opaque commentary to give the board wiggle room when deciding what to do with rates. Yellen’s recent statement is one of the most direct statements we’ve heard.

Big Friday

Friday’s report on job gains is a critical component in the Fed’s final decision. The Fed’s analysis of economic health has been weighted toward growth in employment. Job gains, which have averaged 190,000 for the past three months, indicate corporate confidence in future growth and foreshadow strong consumer spending. The jobs report due out this Friday will likely determine the fate of rates this year.

Although there are three Fed meetings scheduled for the balance of the year, the one on September 20 to 21 is the most likely time for a rate change. The November meeting is dangerously close to the Presidential election and the final meeting of the year scheduled for mid-December may be waterlogged by post-election turmoil.

You might also enjoy…


Obscure Tax Law Forces This Company to Pay Out 90% of its Profits

A 50-year-old loophole is forcing one company to pay out $9 of every $10 it makes from ironclad contracts with the U.S. Government.

In fact, over the past seven years, it’s made payments ranging from a few dollars… to tens of thousands of dollars… 30 times. Without a single cut! 

Most folks don’t even know this company exists, but the ones that do are making a mint.

Like Ted B., who’s set to receive a check for $1,096 just a few days from now.

Merrill H., a 58-year-old from New York, has collected over $3,385 so far. 

And retirees Beth and Terry P. have raked in $16,555.

I’ve put together a special report that will give you all the details, including simple instructions on how to get your name on the payout list before the next cutoff date.

You can get your copy here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.