The place is Jackson Hole, Wyoming. The dates are Aug. 26-28, 2021. The topic is “Macroeconomic Policy in an Uneven Economy.” The participants are central bankers, economists, and various other policymakers, explains Mike Larson, editor of Safe Money Report.
For Wall Street and bond-market types, this upcoming get-together is like Woodstock and Lollapalooza all rolled into one. But for investors like you, this annual event won’t be a reason to celebrate.
The reason? It will confirm nothing has really changed. Finding decent income and decent yields will continue to be a massive headache! And that’s why I’m going to keep doing my best to help you fight back in this zero-rate world.
First, let me explain more about this event and why it’s so important. The Federal Reserve Bank of Kansas City has been hosting an economic and policy powwow since 1978. Amid the mountains and prairie lands of Wyoming, dozens of domestic and foreign participants gather to discuss economic issues, policy moves, and market developments.
It may not sound like the most exciting way to spend a few days. But over the years, policymakers have used the symposium to break big news. Markets have reacted in kind, with major swings in currencies, interest rates, and stocks often following.
Fed Chairman Jay Powell will soon be delivering remarks at this year’s event—and the timing is very interesting. Some Fed speakers have indicated they want to dial back the current $120-billion-per-month QE program. Others have signaled concern about keeping policy so easy despite much-improved job market data and higher inflation readings.
Now, Wall Street wants to know what Powell thinks. Does he want to cut back on bond buying? If so, when will the Fed start and how long will the process take? What about interest rates? When does he think the Fed should start raising them?
Me? I’ve told you before that this Fed has shown little inclination to rock the boat on Wall Street. If anything, it’s even more beholden to, and focused on, Wall Street than the Fed was under former Chairs Janet Yellen and Ben Bernanke.
Even IF Powell were to suggest a tapering will start later in 2021, or more likely in 2022, I don’t believe he’ll touch the “third rail” of interest rates. Instead, he’ll underscore at the symposium that they’re going to stay pegged near zero for ages.
My job isn’t to tell you whether that’s the “right” or “wrong” approach. It’s to tell you what to do about it. And on THAT front, I couldn’t be clearer. You simply HAVE to take steps to boost the income and yield your portfolio spins off.
That means focusing on higher-yielding, higher-rated stocks and ETFs that help you generate market-beating income. It also means learning about other strategies like options selling, which can help you generate income infusions as often as every week.
To help you on both fronts, I’ll be hitting the road for a key event myself ...
I’m speaking at The MoneyShow Las Vegas. The conference runs from September 12-14 at the Bally’s/Paris Hotel. This link has all the details on my presentations, as well as information on how to register.
I sincerely hope you can join me at this conference. And of course, you can continue to find additional guidance and suggestions on how to beat the income drought right here. Because I know from your comments that greater income is something you’re continuing to search for high and low—even if Powell probably won’t give you any help on that score later this month.
Safe Money Report focuses on these kinds of stocks, which include names in the consumer staples, food and beverage, retail, and healthcare sectors. Visit Safe Money Report here.
