Fast Money Blog- 9/22/23
The biggest Wall Street story this week came on Wednesday, September 20th, when the Federal Reserve met to discuss whether or not to raise interest rates. As it turned out, they decided to hold rates in a range of 5.25% - 5.5%, a 22-year high.
The Fed also projected that they think one more rate hike will be needed this year, as they expect stronger economic growth, lower unemployment and slower inflation at the end of 2023 than they had previously anticipated.
As the Wealthy Investor I disagree with the Feds expectations. Here’s why:
1. In the U.S. stock market the fourth quarter always sees economic simulation due to the holiday season.
2. Because of the additional seasonal workers that are added to meet the demand of Q4 retailers, I expect unemployment statistics to remain steady.
3. I expect key Dow components like Apple, Inc. (AAPL), Mastercard Corporation (MA) and Visa, Inc. (V) to rise as we head towards the end of 2023.
The above 3 indicators are stimulative by nature and reject the notion of economic contraction.
What does this mean for you and your portfolio?
Be sure that at least 1/3 of all the stocks you owe are Dow components.
I highly recommend that you trade stocks that pay a dividend.
Always follow Wealthy Investor discipline and continue to build positions using $10 buy signals.
Stay open, stay positive.
It looks like the stock market will rise between now and Christmas Day.
Tyrone Jackson, The Wealthy Investor