Prediction: Future Profitability Will Be on Ability to Predict FED Moves
After reading and researching it seems the FED will no longer change rates slowly in this economy. When the FED raises rates when the economy rebounds more, expect it to increase by more than 2 percentages points in one session. The days of Greenspan's incremental changes over years at a time are over. I also believe that rates will be lowered by large increments at a time in the future. Profitability will depend on one's ability to predict the FED's next move in interest rates as they will be large and have rapid effects. This creates a very powerful role for the FED. Since so much profitability will rely on their next move many investors will do whatever they can to try and figure it out. The best macroeconomic forecasters will do the best. Just some thoughts...