Here’s a comprehensive rundown of what to expect from tomorrow’s big Fed decision:
- The media will spend the day tirelessly debating what the Fed will say.
- The markets will all overreact to any little report about anything leading up to the official statement.
- The Fed will release a statement that changes a few dozen words (and says the same basic thing as the past few statements), the media will publish comparisons overanalyzing this statement relative to past statements and markets will overreact and read into every little meaningless change.
- Ultimately, the statement will actually say nothing of any significance and the day will be mostly a big waste of time and breath.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.