If a picture is worth a thousand words, let me sum up my assessment of Janet Yellen and the FED this way:
When the “Sons of Hal” help lead us into the next major financial crisis, the “after the fact” Talking Heads on TOUT-TV (CNBC), will talk about how truly behind the curve the FED was during Yellen’s tenure (Trump will not renew her term) and how she flipped-flop constantly. Oh, and there’s this little matter of unwinding several trillion dollars on their books that can’t disappear into thin air like the creation of them came from.
The common theme when I warned about a major stock market swoon in 1987, 2000 and 2007, was the vast majority of investors not only disagreed with my assessment but did so vehemently and went out of their way to tell me how it was “different this time”.
An anonymous emailer yesterday said:
“Grandich, you’ve missed several months of market gains with your chicken in the foxhole approach. Just admit you were wrong and your clients and readers will forgive you.”
This will be correct if the majority of folks who remain with equities up to their eyeballs, can cash out and lock in their “paper” gains before prices are lower than where we started at the beginning of this “Trump Bump”. I’m willing to wager they won’t. and also remember an investment theme that has served me well for over three decades now:
“It’s better to be a year too early than a day too late!”