27th August, 2021, 10:23 AM
Jackson Hole Symposium Is On-Going Now, Here’s What We’re Not Doing!
The Jackson Hole Symposium is the gathering of central bankers, policymakers, academics and economists from around the world to discuss about world economic policy. But what the world or market is looking to is probably hints on tapering from Federal Reserve chairman Jerome Powell. This has been the discussion through the week, whether or not the Fed will taper, by how much or how fast and will it lead to a taper tantrum?
However, with a consensus still forming among Fed members on when to taper, some see scant market-moving revelations by Powell in his speech, contending the Fed will want to see upcoming jobs and inflation data and more information on how the coronavirus Delta variant impacts the economy.
There is always much talk and speculation about what will happen during these BIG KEY events and its really anyone’s guess on what’s going to happen. Confused and unsure of what to do?
Here’s What We’re Not Doing! ❌❌
- We’re not taking up new TRADING positions.
- We’re not selling away our investment positions.
- We’re not trying to speculate the outcome.
1. As we going into such a Key event it is anyone’s guess what’s going to happen. Who really knows for sure what Powell will say and how it is going to affect the markets. Why stress 😣yourself over the outcome? Market will always be there and there will be other opportunities with lesser risk involved. Markets could gap up or down on Monday and are you willing to risk that outcome? It is sort of trading a company through earnings which we avoid as it could really could be a surprise. Remember to always have a sound trade plan before entering the markets.
2. As for Investment wise, we continue to hold on to great companies with strong fundaments and wide economic moat and with such events it doesn’t warrant a sell unless the company changes fundamentally. Such events could just have a knee jerk reaction which might able investors to pick up great company at further discounts.
3. We are preparing our trade plan of an eventual outcome and waiting for Monday to see how market reacts before making any moves. In this way, we can have a stress free weekend! 😃
Hope this articles helps in some of your perspective.
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