The Fed Has Hit the ‘Pause’ Button

Daily Reckoning/Jim Rickards/07-19-17

Last week the Fed raised the white flag on further rate hikes. There won’t be any for the foreseeable future.

No rate hikes are coming at the July, September or November Fed FOMC meetings. The earliest rate hike might be at the December 13, 2017 FOMC meeting, but even that has a less than 50% probability as of today. I’ll update those probabilities using my proprietary models in the weeks and months ahead.

…Tight money, a weak economy, and a stock market bubble is a classic recipe for a stock market crash. It’s time for investors to go into a defensive crouch by selling stocks and reallocating assets to cash, Treasury notes, gold and gold mining shares.

PG View: Rickards sees potential for a “20% decline in stock prices at best, and possibly a 30% market crash before the end of the year.” It may be prudent to heed his advise and take profits in stocks and move some of that capital to the safety of gold.

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