I enjoy writing these dailies for so many reasons, not the least of which is the rabbit hole of research writing them often sends me down into.
For instance, I delved more into
1979 and interest rates. At the time, I was a very young girl beginning a career on the commodities exchange in the World Trade Center in New York.
A fabulous time to enter this whole new world (I was a special education teacher beforehand). The thrill on the floor and in the world was about rising commodities prices, the OPEC embargoes and out of control inflation.
Concurrently, history was being made concerning monetary policy. On October 6, 1979, Paul Volcker, then Chairman of the
Federal Reserve, was given the leeway to be more flexible and thereby more aggressive adjusting the Federal Fund rates.
His job was to curtail out of control inflation which by 1980 had peaked to over 13%!
Which Brings Me to Today: With
inflation extremely low, and the present day Federal Reserve under pressure to do both-raise the rates and/or add more liquidity, the markets have been divisive at best.
Circling back to our Prodigal Son,
Regional Banks (KRE), we can try to assess the reaction to the Fed going forward.
Tap here to read more about what Regional Banks are telling us, plus get recommendations in the major ETFs
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Keep a civil tongue.