Good Evening, My my, fear was in the air this morning. Panic selling was front and center and why not, the noise err that is…. news was reporting that traders were concerned that rising treasury rates would drive up inflation and thus bring about higher interest rates. Well, I guess if we have a whole whole lot more of these raising treasury rates that might happen, but I just don’t see it now and you know what the most important thing is?? Neither does FED Chairman Jerome Powell who said today while giving his annual report to the Senate Banking Committee that despite a sharp rise this year in bond yields that has accompanied heightened concern over inflation, that inflation is soft with price pressures remaining mostly muted and that the economic outlook is still “highly uncertain.”   “The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved.” That means the FED has no intention of raising rates at this time!!! Take that you fear mongering news networks!!! It’s kind of hard for rates to go up if the FED doesn’t raise them.  Sure the treasury yields are rising. Sure there will be some inflation. That’s what happens when goods and services start to come into high demand. Remember economics 101, supply and demand? Folks we have more positive things on the horizon with Vaccine distribution increasing , overall cases of Covid-19 decreasing, a 1.9 Trillion dollar pandemic relief package moving through congress, and topping that off great corporate earnings. How great??? Look no farther than today’s blowout earnings from Home Improvement Retailer Home Depot. How great were their earnings?? Their sales increased 25%! That’s how good! Home Depot is a good barometer of our economy. Does it sound like our economy is failing to you?? Me neither. Of course they’ll be some inflation. Yes treasury yields are rising but the thing to remember here is that treasury yields and treasury prices move in opposite directions. So that means that bonds are being sold and if bonds are being sold where is that money going???? Likely into stocks for the next run up. I said all this on our Facebook page today. So I apologize for the repeat, but it’s relevant! If you going to consider staying in equities while everyone else is hiding from the sky that’s supposed to be falling then you need to understand why. All that said, I looked at all the charts I have available today and not one of them gave me a reason to sell. I could be wrong, that’s always a possibility, but as for me and my house? We’re not selling anything. Period!

Todays trading left us with the following results: Our TSP allocation posted a drop of -0.76%. For comparison, the The Dow eked out a gain of +0.05%, the Nasdaq fell -0.50%, and the S&P 500 posted slight gain of +0.13%.

The days action left us with the following signals: C-Buy, S-Buy, I-Buy, F-Sell. We are currently invested at 100/S. Our allocation is now +11.13% for the year not including the days results. Here are the latest posted results:

God bless, Scott 

 

 ***Just a reminder that you can review the performance of our allocation at the Web Site TSPTALK.com in the autotracker section under the screen name KyFan1.

 

 

I produce and publish this blog as both a ministry and for the benefit of any Federal Government Employee. This is done to offer you some guidance as to how to approach your retirement more financially successful. When it is time for you to retire, I recommend you utilize the services of a Professional Money Manager, who works with a reputable investment firm. He understands the guidance you have already received and he can manage your savings assets utilizing a more advanced investment program into the future. 

 

If you would like to receive more information about this introduction, please feel free to contact me at  [email protected].