Third Time is a Charm!
FED FUNDS:
On October 30th the Federal Reserve Board cut rates for a 3rd time this year after hiking rates 7 times in a row. What does it mean for global markets?
The most interesting chart I have seen on this is from Payden & Rygel, which for full disclosure manages about $2 billion in fixed income portfolios for my team at the VTA. In short, a 3rd rate cut is very stimulative for global manufacturing growth and thus should be very positive for global equity markets.
Don’t fight the Fed!
S&P 500:
The Tom DeMark fans out there will appreciate the subtle placement of the trend lines and for the old school Edwards & Magee technicians I added a measured breakout which would suggest that the Bulls are in control and that markets should continue to grind higher.
VOLATILITY:
Everyone I talk to says that the markets seem to be more volatile than in the past. When you look at the data, courtesy of Wellington Management, that simply is not true. See table below and follow the link for the full report.
RISK MANAGEMENT:
Another company that I am backing on Angel List is StratiFi. They offer Registered Investment Advisors (RIAs) an excellent tool to ensure that portfolios are aligned with the investors risk appetite.
StratiFi uses behavioral economics to asses the investor’s risk appetite and then uses risk factor analysis to determine if the investor’s portfolio and risk appetite are in sync.
StratiFi is currently available on the Charles Schwab, E-Trade, Fidelity and TD Ameritrade platforms for Registered Investment Advisors (RIAs).
If you are into startups, I have a small pro-rata allocation at an $8.5 million pre-money valuation cap, you can invest along side me here at the StratiFi syndicate.
My favorite podcast this week was Jason Calacanis’ This Week In Startups. Jason and a rotating group of guest cover the highlights from the first 1,000 podcast. It’s pretty crazy, he has great insights into what is happening in the world of technology here in the Silicon Valley and beyond.
Have a great weekend!
And if you are interested in startups you can join over 700 other backers that follow my syndicate here at Angel List Syndicate, this gives you a front row seat on which private companies I am investing in directly.
Thanks for reading my letter and feel free to forward it!
- Sean Bill / MacroCrunch