Why Tapering is Likely Coming Soon and What to Do with Your Portfolio

TLDRUS worker pay is rising faster than expected, signaling the possibility of tapering. Increase cash position and stay informed about the Fed's interest rate hike probabilities. Take advantage of short-term investing opportunities during market volatility.

Key insights

💰US worker pay is rising faster than expected, indicating a recovering jobs market.

📈The average hourly earnings have been increasing 0.4% per month, surpassing pre-pandemic levels.

💼The employment to population ratio is also improving, suggesting job stability.

The black unemployment rate percentage is decreasing, indicating improved economic equality.

🔍The market is expecting an interest rate hike based on the CME Fed Watch Tool probabilities.

Q&A

Should I increase my cash position?

Yes, increasing your cash position is recommended to prepare for potential market volatility and take advantage of short-term investment opportunities.

What should I monitor to determine the probability of a rate hike?

Stay informed about the Fed's interest rate hike probabilities, such as the CME Fed Watch Tool, to gauge market expectations.

Is now a good time for short-term investing?

Yes, market volatility presents short-term investment opportunities. Monitor charts and seek diverse opinions and analysis to make informed decisions.

Should I consider government bonds and cash for my long-term investment strategy?

Increasing your position in long-term government bonds and cash can help balance your portfolio during uncertain times.

How can I make confident investment decisions?

Seek advice, opinions, and analysis from various sources. Educate yourself about investing to understand the reasons behind your choices.

Timestamped Summary

00:08US worker pay is rising faster than expected, indicating a recovering jobs market.

01:40Average hourly earnings have been increasing 0.4% per month, surpassing pre-pandemic levels.

03:53The black unemployment rate percentage is decreasing, indicating improved economic equality.

08:14The market is expecting an interest rate hike based on the CME Fed Watch Tool probabilities.