Despite the hype surrounding yesterday’s meeting of the Federal Open Market Committee (the monetary policy arm of the Federal Reserve), the announcement that followed doesn’t change a thing.
That’s right, nothing. Neither the FOMC statement itself nor Fed Chair Janet Yellen told us anything that the Fed and its proxies hadn’t told us before.
But nevertheless, this is still groundbreaking stuff. It is the most important announcement since the Fed instituted outright QE in March 2009.
And as I have told you in past posts, it will have major implications for the markets and for your money.
There is a lot here that is essential for you understand to protect your money and take advantage of this new policy.
And – fair warning – it’s not bullish.
Here’s what happened, and what you need to know…
Over the last week, the major market indices are all up.
If you’ve watched the mainstream financial media, you’d think this uptick were cause for celebration. You’d think the eight-year-old bull market is about to shift into another gear.
Thanks to my proprietary LAMPP indicator, we know that shift isn’t likely.
Over the past few weeks, we’re talked about how the Fed drives the long-term trend of liquidity.
But what influences the Short-Term Indicator, the one that has been sitting on yellow and inching closer and closer to red?
Today, I want to take a deep dive into the short-term components of the LAMPP so that you can understand exactly what’s going to push us from yellow to red.
Here’s what you need to know…