By: Guy Adami, Director, Advisor Advocacy
Published September 14, 2016
At 52, I continue to be astonished that some of my most lasting impressions have come from coaches. These “coachable moments” typically consisted of a stern tongue lashing and were often accompanied by flying chairs, tables, etc. Oddly enough, such lessons didn’t take place after we lost a game but rather after we emerged victorious. My sense is that our coaches didn’t want us to get complacent after a win and used the air cover of a victory to keep us grounded. Later in life, I learned that this tactic was used by everyone from Bill Parcells to Bobby Knight.
So how does that apply here? I’m glad you asked. With the markets at or near record highs, we have a nice opportunity for a coachable moment. Better to point out some of the flaws when things are good than to pile on when things are not as rosy. In the name of compliance, I will spare you the tables and chairs.
Today’s commentary revolves around our Federal Reserve. Without getting into mandates, the role of the Fed, etc., we need to ask ourselves the following questions: What will happen if the Federal Reserve raises interest rates in September? What are they scared of if they don’t? Many people think the stock market is an accurate gauge of the broader economy. It is my steadfast belief, however, that because of the unprecedented action of our Federal Reserve and other central banks around the world, the chasm between the stock market and the real economy has never been wider. So with the market grinding higher and everything seemingly under control, let’s use this as an opportunity to take a step back and critically examine what is really taking place.