Transcript
Hey, everybody, welcome to Wednesday, really good day today, I thought I might be able to finally wear one of my green shirts didn’t quite make it 1.24% gain today on the S&P 500. And even better a majority of our targeted indexes and individual stocks did better than the S&P 500 today, so it was a really good day for our portfolios. And the big catalyst today was the Federal Reserve. So they had their meeting, and they announced that they’re going to keep interest rates at zero, or near zero. And that’s a big deal for the stock market. Because when the bonds, you know, don’t pay much, and the banks don’t pay much, because rates are so low, that tends to funnel a lot of money towards the stock market, you know, generally speaking, there’s only so much money out there, and it’s kind of moving around, and there’s a competition. And so it makes the stock market more competitive, when rates are lower.
They also talked about and double down on their commentary that they made last time that they would do anything that they possibly could to support the economy in the markets. So all of these interest rate lowering quantitative easing and bond purchases, and all these types of things. And so that’s what we want to be careful of, we really don’t want to fight against that, you know, it’s not a great time to be on the other side, where you’re trying to short the market or really, you know, getting out of the market because you feel like things might fall. And the Fed is very powerful in this particular regards.
We do have to watch at some point in the future if they started to raise rates, you know, they raised rates pretty significantly before the 2000 downturn and again before the 2008 downturn. So that’s that’s something to watch for, but they’re talking about not raising rates for quite a while, which again, makes stocks that much more competitive. So I, I’m very excited about where things are right now. We continue to move along, lots of hiccups, lots of volatility, we’ve got the stimulus thing to deal with, you know, and that’s going to create issues but a very, very good day today. So we’ll take that and we’ll see what happens tomorrow. So I look forward to talking to you about that then thank you.