Tim’s Tidbits 09.19.17

Trending: President Trump just nicknamed Kim Jong-un ‘Rocket Man’ during his first UN speech | CNBC

Kim Jung

Events “FED Meeting”: The two-day Federal Reserve monetary-policy meeting begins today in Washington. Most of the focus will be on the central bank’s plan to shrink its $4.5 trillion balance sheet. Since it began purchasing assets nine years ago to stimulate the struggling U.S. economy, the Fed appears ready to start shrinking the size of its balance sheet, with Goldman Sachs Research economists expecting an announcement of balance sheet “normalization” at this week’s FOMC meeting. 

“Why a shrinking Fed balance sheet won’t kill the bull market” | MarketWatch

FED Assets

Equities: On September 18th the DOW marked its 40th record close of 2017 and 5th straight record close as investors prepare themselves for the start of the Fed’s meeting this week. Investors are largely expecting interest rates to remain unchanged which will ideally ease fears and caution. Currently, retail investors part of the American Association of Individual Investors which is comprised of 150,000 self-directed investors are proceeding with caution. In addition, the VIX CBOE Volatility Index is back to low $10’s and a spike in volatility typically weakens equity markets. 

Retail Investor Sentiment 9.19.17

Learn more about volatility:

Volatility and Inverse ETFs: Understand The Risks | Investopedia

 

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