I cannot recommend putting any new money to work at these levels, the Shiller PE Ratio is now over 28 – higher than at any time other than the Dot Com Bubble.
Does this mean the market is going to crash – or you should sell all your holdings? No, the market can – and will go anywhere it wants in the short term. You should be looking at your gains, and doing the following analysis – if your holdings went down by 50%, could you stick it out? If the answer is no, you should cut your equity holding to a level that will allow you to endure a 50% crash.
Other than that – it is time to sit on the sidelines and watch the fun.
The Federal Reserve’s Rate Hike decision comes at 2:00 PM:
- Bloomberg – What to Expect From the Fed Today
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