So we have the FOMC meeting starting in a few hours, but leading on to the meeting we will have the consumer price index (CPI) released in less than an hour–the final piece to the puzzle before a interest rate hike/pause. Likely only a massive surprise (either higher or lower) will make a difference in the rate hike decision – as I have mentioned I think that the FOMC really wants to raise rates – but likely will pause. We’ll know in about 30 hours.
Markets are fairly quiet today with equities barely moving–although yesterday the S&P500 index was up about 1% – if you were to believe the pundits these markets are pretty darned overvalued and we could see a might tumble soon. Well no one knows for sure and I don’t fixate on that possibility – just like the coming ‘recession’ which never seems to arrive trying to forecast the macro movements is a fools errand and only causes one to cower in the corner and not act.
Once again I did nothing at all yesterday – no buying or selling. I am thinking that I have most of the banking issues I want/need and need to move onto a new sector. Some have suggested business development companys (BDCs) and it looks to me like that sector does hold some great opportunity–in the baby bonds not the common shares. I will be honing in on a few shares soon–without a doubt I will buy the new Capital Southwest Corp (CSWC) 7.75% baby bond when it becomes available.