Understanding Risk – The Fed Warns Investors
By Julien B. Booth
November 29, 2018
I hope this note finds you well. Happy Hanukkah and Merry Christmas
Our position as an investment firm with a primary focus on principal safety and durable income is well known.
Sometimes we find it helpful to provide third party work from those without our proclaimed bias. The Federal Reserve is acknowledging the:
3. Present asset valuations.
When you bake this cake – along with plummeting oil prices (-35%) and falling rates (10 year UST at 3.02).
I believe the Fed is trying to get in front of being blamed for a potential, material drawdown in equity market prices. Nothing is ever certain; its all about probability.