Fed rate decision and my portfolio - feeling a bit antsy
- •The Fed's rate decision today has me feeling a bit antsy, to be honest.
- •Still, seeing that 25 basis point hike, even if it was expected, always makes me re-evaluate everything.
- •I’ve got a decent chunk, probably around $350k, in my Gold IRA, mostly in various 1oz and 1/2oz gold rounds.
The Fed's rate decision today has me feeling a bit antsy, to be honest. I’ve been in commodities my whole working life, spent decades in the steel industry down here in Birmingham, so I understand market cycles better than most. Still, seeing that 25 basis point hike, even if it was expected, always makes me re-evaluate everything. I’ve got a decent chunk, probably around $350k, in my Gold IRA, mostly in various 1oz and 1/2oz gold rounds. Been building that up for a while now, probably 7-8 years actively.
My core belief is that gold acts as a hedge against inflation and market volatility, and frankly, I don’t see inflation disappearing overnight, even with the Fed’s efforts. We’ve got so much uncertainty globally, from supply chain kinks to geopolitical friction, that I just can’t imagine being fully out of physical metals. With these rate hikes, I know the dollar should strengthen, which traditionally isn't great for gold in the short term. But are we really living in traditional times anymore? Feels like the rulebook got tossed out the window a few years back.
Part of me is wondering if I should take advantage of any short-term dips we might see. I’ve got some cash on the sidelines, maybe another $20k that I was thinking about putting into some more fractional gold or even a few 10oz silver bars just to diversify the precious metals a bit more. I’m thinking those 1/4oz gold rounds could be a good play if the price pulls back, more liquidity if I ever need to offload a small amount without touching the bigger stuff. What are others thinking in terms of immediate action post-Fed?
I know the prevailing wisdom is to hold gold for the long haul, and that’s certainly my plan. But it's hard not to second-guess when the financial news cycle is screaming about recessions one day and robust job numbers the next. Is anyone else thinking about adjusting their allocation, even slightly, based on this rate decision? Or are we all just riding it out, trusting the long-term fundamentals?