Thursday, July 13, 2017

Janet Yellen's Boring ol' Testimony: Two Must Knows That Can Make You Money

Fed Chair Janet Yellen gets it from Congress.
Not nice.
1. What does a mean ol' Congress mean for the stock market?  Bullish!

2. What did Fed Chair Janet Yellen say about fixed investment? Oh she only said it's starting to turn up. Up? Bullish!


All that other stuff everyone's reporting is wasting your time. Financial markets knew just about everything else before the meeting. We did say yesterday at 8:17 AM before her speech that the market was ready to go up on news we already knew.

Mean Old Congress: Bullish, We'll Explain

Anybody who listened to the testimony had to notice how down-right mean Congress was in their questioning to poor ol' Fed Chair Janet Yellen. They cut her off abruptly multiple times to just get a 'yes' or 'no.'

You know it takes a few words for Fed officials to say something. "So that's a yes" type questioning. Their tone was down-right mean. Not nice!

We're joking a little bit but they were blaming her for the Fed having so much power. As if she invented the Fed.

But that's incredibly bullish.  It appears that (mean-ol) Congress is building momentum to try to pass deregulation measures which could reduce the powers of the Fed.

That may be good or bad in the long term but (who cares about the long term right?) in the short term it will absolutely let the cap off the market to go higher. Why? Because if banks are not required to hold so much capital they can lend more driving spending. If regulations are reduced they can more easily linger more capital into the financial markets also driving the stock market higher.

Bullish.

Business Fixed Investment: Boring But Very Bullish And Can Make You Money.

Here's what she said, "Business fixed investment has turned up this year after having been soft last year."

Music to our ears. That's the business cycle. Business leaders have confidence enough to expand capacity. They only have confidence when they have visibility from customers. This is the old fashioned business cycle.

This mind-numbing decade of no-growth totally had us forget that a new business cycle could erupt at any moment. We're here to tell you, of course it can. That's bullish.

Here's Fed Chair Janet Yellen's chart:

fixed investment chart
Bingo! It's turning up. Look out bears.
Meditate on the above chart for a second how so important this is to companies and stocks and probably soon stock prices.

Anybody who heard FC Janet Yellen speak in the last year or two heard her wonder why fixed investment wasn't moving up. No more wondering, it's moving up. Bullish.

Let's Wrap It Up

That didn't hurt did it?

Mean Congress: Bullish.

Fixed Investment, F I N A L L Y turning up: Bullish

Have a great day! We insist!

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By: Chaim Siegel, Elazar Advisors, LLC

Disclaimer: Stocks reported by Elazar Advisors, LLC are guided by our daily, weekly and monthly methodologies. We have a daily overlay which changes more frequently which is reported to our premium members and could differ from the above report. Portions of this report may have been issued in advance to subscribers or clients. All investments have many risks and can lose principal in the short and long term. This article is for information purposes only. Ratings are based on hypothetical trade directions. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC and their related parties harmless. Any trading strategy can lose money and any investor should understand the risks.

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