A + PLUS
A + PLUS
Market Direction
I will tell what I think will happen.
1. Stocks and Bonds will go up until the Elections are over.
2. When the Utility Stock Index peaks and starts to drops, cash out of Stocks and Bonds, and move to Money markets. You have about several months before the Fed will increase interest rates and the Stock Market starts to fall.
3. The approach is to get your money out of Stocks and Bonds when the FED is raising interest rates and into Stocks and Bonds when the FED is lowering interest rates.
4. Many people park their cash in money market accounts: There are funds which say they are Money Market Funds, but don't really pay you the maximun Money Rate! Management seeks to get the most of your investment money by paying you the lowest possible rate on these so called money market accounts and charging you the highest possible on your credit account. How do you know if you have a true money market account? If the FED increases interest rate and your money market is still paying the same rate, you probably don't have a true money market account. If on the other hand your money market account increases its rates almost immediately, then you know you have a true money market account. This action also holds true in reverse.