Hey, Ross here:
The Fed announces its latest rate cut decision later this afternoon.
They will almost certainly hold rates steady.
But Fed Chair Powell’s press conference – where he’ll share his view on the markets, economy, and future rate cuts – will almost certainly cause markets to move.
His comments could spark a recovery – or extend the selloff.
Regardless of what happens, one thing is for sure – uncertainty will still remain high.
But that’s a good thing.
Today’s chart shows why.
Chart of the Day
The Economic Policy Uncertainty Index is an index constructed based on newspaper articles regarding policy uncertainty from leading newspapers.
It counts the number of newspaper articles containing terms related to economic uncertainty.
Think of it as a measure of “media-generated” uncertainty.
To no surprise, it’s spiking right now, with most of the mainstream media doing everything they can to discredit Trump.
But the thing to pay attention to…
Is that these “uncertainty spikes” typically coincide with market bottoms – not tops.
That’s why broader market returns following these spikes have generally been highly positive.
And the greater the uncertainty, the higher the future returns.
In short, uncertainty can be a good thing – but only if you know what you’re doing.
Insight of the Day
Perceived uncertainty will always be higher than actual uncertainty.
Is there real uncertainty going on right now? 100% yes.
Trump’s tariff negotiation strategy – which may be effective in the longer term – is definitely generating heightened uncertainty.
But remember this – the level of actual uncertainty will always be amplified by the media.
Factor that with human psychology…
And that means perceived uncertainty will always be higher than actual uncertainty.
This is why, when uncertainty is highest – so are the size of potential opportunities.
Of course, exploiting these opportunities requires a proven, objective strategy.
Customer Story of the Day
“Ross Givens from Trader’s Agency is an awesome resource to help you with your investing needs and investing education.
I waited about three months to write this review to give myself time to see the impact on my portfolio and I have been completely satisfied.
Ross has a no nonsense, simple approach that makes it easy for all investors and he takes the time to answer all questions on a weekly basis.
Thanks, Ross and Traders Agency!”
Ross Givens
Editor, Stock Surge Daily
