2015 is nearly in the books, but this time around (unlike years past), we might have a little surprise in store for us… The Fed still has one last meeting left, before we wrap up this year. The next FOMC meeting is scheduled for December 15-16. At that time, we will know for certain whether or not the economy is “healthy” enough for our first interest rate hike in nearly a decade.
Maybe we will have lift on…
In any case, I wanted to ask readers at this time — How does the possibility for a Fed rate hike this month influence your own investment decisions?
- Nothing changes, keep on investing as usual?
- “Buy the rumor and sell the news”?
- Worried about tax-loss harvesting season?
- Building up a strong cash position?
- Do you think the USD will keep on strengthening?
As for myself, I feel as though I already have sufficient skin in the game (to the tune of over $200,000 invested in mining stocks). And with a rate hike almost certain to happen at this point, I really have no objections to hoarding more USD…
So, my own approach will most likely be:
- Buy some mining stocks on any significant pullbacks.
- Focus mostly on continuing to build up a strong cash position.
- Wait for the Fed decision and subsequent market reaction.
This time around, I’m going to be more cautious (status quo + reactive) than aggressive. But who knows? Maybe the pending rate hike has already been priced in the markets…
We’ll find out shortly enough…
Lastly, I’m NOT so much a large cap investor, but any buyers here? These commodity stocks were the darlings of their respective industries not very long ago…
BHP Billiton (BBL):
Kinder Morgan (KMI):
Freeport McMoRan (FCX):