Wednesday, December 16, 2015

Fed Rate Hike Decision

There has been an awful lot of talk regarding Janet Yellen and the FOMC meeting this week. To me it's pointless.  The Fed made it clear throughout the fall that rates would be hiked in December.

What it means for out portfolio is also quite meaningless.  Years from now it will not matter what the Fed decided to do. Our companies will continue to work hard making more money for us the entire time while we sit back.  Oh how I love investing!

If it really mattered Goldman Sachs wouldn't have upgraded Visa  to their conviction buy list yesterday. Or MasterCard wouldn't have raised it's dividend and announced a bigger share buyback.  Or how about Altria which is one of my favorite holdings. I think after today people will still be buying cigarettes, and many smokers will not even have a clue as to what the Fed is doing today.

So go on about your day like normal.  Stocks will continue to go up(albeit not in a straight line) since capital will continue to flow into the USD and spill over into equities. When the next inevitable recession comes we will be at the ready to buy some companies at insanely cheap prices.

Cheers!

The Long Haul Investor

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