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The Trillion Dollar Question: To Lift Off Or Not To Lift Off

Published 09/13/2015, 12:22 AM
Updated 07/09/2023, 06:31 AM

If you have been involved in the sales process in any industry, you are probably well aware that when you have a female customer as a prospect, you might want to allocate some extra time to finalize the sale, if indeed you are so fortunate. You see, as any red blooded man can tell you, many women have a common characteristic because they sometimes change their minds when forced to make a decision. Or maybe they don't make decision, you never can tell. Now, don't get me wrong, we of the male sex are not complaining about women, no, not at all. We know you run the world, and have for a long time.

Anyway, I bring up this topic because next week, Janet Yellen will make the long awaited, and much ballyhooed decision on whether to finally raise interest rates, after keeping them at virtually nothing for nearly six years. Oops, forgive me, it is not quite accurate to say Mrs. Yellen is making the big decision. Actually, it is the Federal Open Market Committee, and it seems every member has a different opinion on what to do. As for moi, my own feeling is they will follow the advice of the highly regarded Mr. Stanley Fischer, Vice Chairman of the Fed, who seems to be pushing for a raise. Market participants are divided on what action the fed will take, but trading sentiment shows a 25% chance of a raise. Over the last few months, investors have been a bit schizophrenic about how they feel about the prospects for investment. Just like the fabulous female who is indecisive about potential choices, it seems they cannot make up their mind.

The news was light in financial markets this week as China's volatility stabilized a bit with more government involvement to help soothe frayed nerves. Here in the United States, jobless claims came in line with expectations, providing another data point for the Fed to justify the big raise (uh, right). Goldman Sachs (NYSE:GS) made headlines by declaring oil is headed to $20 per barrel. Remember, this is the same crew which declared a few years ago when oil was at $150, it was sure to hit $200.

Commodity producing countries keep taking it on the chin, especially the emerging markets. Gold and silver prices have been flat and with lift off approaching, many are skeptical of this asset class. A few private companies backed by venture capital bucks and sporting lofty valuations a few years ago have suffered the reality of the marketplace. Maybe, just maybe, the pre-public stratosphere is, quite literally, coming back to earth just a tad. Don't hold your breath.

With respect to specific companies, lululemon athletica inc (NASDAQ:LULU) reported nice results but investors were not pleased with guidance and the competitive landscape. The same is true for Krispy Kreme Doughnuts Inc (NYSE:KKD), which served up a nice, appetizing meal, but nonetheless, the market shunned it's sweet treat. Not so for Kroger (NYSE:KR), which raised guidance after posting yet another solid quarter. The company has outdone expectations for something like four years in a row. Just goes to show you there are always companies out there performing well. Now, just got to find them before everyone else, and then own them. Easier said than done as we well know. Apple (NASDAQ:AAPL) had it's big event and introduced the new I phone 6, a huge I pad, and, yes, the long awaited I pencil. I think I will erase that one from my shopping list, sorry Mr. Cook. Oh, yes, my mistake, the company also introduced Hermes watch bands for the I-watch. It will be interesting to see how those products fare during the important holiday shopping season. History has proven betting against Apple is not the way to go.

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