Portfolio Update: Stock Market Bottom in View
This is what to look for, when we bottom and how I am positioning myself
Enough time has gone by where this is no longer an anomaly, but a principle with sustainability. We have to recognize the elephant in the room…
The Federal Reserve really does control the U.S. stock market and we can make portfolio decisions around it
At first, I recognized the manipulation done by the Federal Reserve as a way to keep asset prices inflated and the economy moving forward. More or less, I knew the cause and effect of the relationship, meaning, raising rates is not good for assets and QE was good for assets. However, despite believing in the individual business investments I have been making and the theory/concept behind these decisions, we need to talk about the accuracy of my previous market calls based on Federal Reserve policy and stock market theory. More importantly, discuss exactly what is going to come next and provide specific, actionable, signs of when exactly this market will reverse, based on this theory. The evolution of my previous market calls:
November 10th, 2021
January 5th, 2021
January 17th, 2022
March 6th, 2022
March 13th, 2022: Explaining the theory in detail & Fed manipulation
By using Federal Reserve policy as our guide, we can predict what the markets are going to do, as well as the economy. More importantly, we can track and use Fed policy in the future to position our portfolios, so this type of draw down never happens to us again. I am still learning and I believe that nearly every investor (not trader) post 2009 is getting a wake up call today. I no longer question how important monetary policy, and Fed policy, is to investing and portfolio management.
This is When Markets are Going to Bottom and What I Am Going to Do Till Then
Keep reading with a 7-day free trial
Subscribe to BluSuit to keep reading this post and get 7 days of free access to the full post archives.