Fed rate decision and my portfolio - feeling a bit antsy
- •Another month, another Fed decision on interest rates, and honestly, it’s getting harder to just “trust the process” as they like to say.
- •Been retired from the auto industry here in Detroit for a few years now, and gold has been my safety net for over two decades – since the late 90s.
- •With a portfolio hovering around the $750k mark, a good chunk of that is in physical gold and a Gold IRA.
Another month, another Fed decision on interest rates, and honestly, it’s getting harder to just “trust the process” as they like to say. Been retired from the auto industry here in Detroit for a few years now, and gold has been my safety net for over two decades – since the late 90s. With a portfolio hovering around the $750k mark, a good chunk of that is in physical gold and a Gold IRA. I’ve seen my share of economic wobbles, but this current inflation coupled with the Fed’s tightrope walk feels different. My biggest fear is them holding rates high for too long, just choking off any real growth, or worse, cutting too soon and letting inflation run rampant again. It’s like, pick a lane, guys!
I remember back in the early 2000s, after 9/11, when the Fed was cutting rates. Gold then was about $300 an ounce; now look at it. It’s a testament to the long-term value, but these day-to-day fluctuations based on Powell’s every word still give me heartburn. I’m especially looking at what this means for the dollar’s strength. A stronger dollar usually isn’t great for gold, but with so much global uncertainty, that traditional inverse relationship feels a lot spottier these days. Anyone else feeling this way, or am I just getting too old and cynical?
I’ve been trying to keep an eye on other precious metals too, just in case. Just found this tool, Silver vs Stocks, that lets you compare how silver's performed against the stock market over different periods. Pretty neat to visualize it for the last 10 years, especially since silver often gets lumped in with gold but can have its own movements. What’s everyone else’s strategy given the current rate outlook? Are you rebalancing at all, or just holding tight like me?