The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.
– Chair of the Board of Governors of the Federal Reserve System Jerome Powell, speaking at the Jackson Hole Economic Symposium on Friday, August 23, 2024
The market loves to hear what Fed Chair Jerome Powell has to say and Friday was no exception. The S&P 500 Index responded favorably while he spoke (the fifteen minutes bracketed by the arrows in the chart below) and for the whole of the day.
During the 15-minute live stream on YouTube the ‘chat’ was moving at breakneck speed. It wasn’t exactly a shining moment for humanity.
Two things occurred to me during his speech:
- Reacting in any way to anything Fed Chair Jerome Powell says is not consistent with true investing, i.e. purchasing shares of ownership in a business, and
- Ai is going to carve through humanity’s dominion over intelligence on this earth like a hot knife through butter.
Folks, real investing in equities means acquiring good businesses at fair or better prices and adopting the mentality that you have an ownership stake. The Fed will do what it needs to do, and good businesses adapt; you don’t need to do anything.
And if you’ve no interest on trading the news, but are simply trying to stay informed, for the love of God, close the chat window.