Amid some market volatility that has investors asking, “Can you believe this is happening?” you may be aware that the Federal Reserve Open Market Committee is set to announce a decision today on the Fed funds rate. The prediction game began long ago, of course, and will reach a fevered pitch this morning as speculators and traders prepare, asking, “What will the Fed say?”
Do you know what the Fed will say? Do I? Of course not. Remember, Your Survival Guy doesn’t get into the prediction business. The Cato Institute’s Chris Edwards explained the terrible record of people who are paid to predict the direction of interest rates.
Instead of attempting to anticipate the nearly random ups and downs of the markets, plan to build a diversified portfolio that attempts to survive and thrive in any market. There are no guarantees of success, but Harry Markowitz called diversification “The only free lunch in investing.”
Action Line: When you want to talk about diversification and your portfolio, email me at ejsmith@yoursurvivalguy.com. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.
