TOO LATE!

I have written, read and heard that the market may really take off when the fed stops raising rates. This does not mean that one should wait for the news before investing.

The markets discount the future. Sometimes the markets get the future wrong for awhile but some folks get the future right before other folks.

In some cases, such as this one, the future is not hard to predict. Yesterday's CPI report showed that the inflation rate is low, today's PPI report showed that inflation is low, other reports out for the past couple of months have shown that worldwide economic growth has slowed. The writing is on the wall!

Besides, it is not necessary to determine if the proper stopping point is 3.5% or 4.25%. It is certainly possible for the fed to overshoot--it has happened before--but it is a reasonable bet that the fed will not over shoot. It is reasonable to assume that the expansion phase of the economic recovery will last for several years. The pattern is well established. The trend is your friend.

BUY THE BULL! PROFITS ARE GROWING, THE ECONOMY IS GROWING, COMPETITIVE INVESTMENTS ARE NOT AVAILABLE. BONDS AND REAL ESTATE ARE IN GENERAL OVER-PRICED RELATIVE TO STOCKS. IF YOU WAIT FOR THE FED TO STOP FIRST, YOU WILL MISS THE BIGGEST PART OF THE RALLY.