There's Too Much Attention on the Fed

There is too much focus -- most of it misdirected -- on what the Federal Reserve may or may not do today. There are a number of reasons for this. First, the Fed is but one of several major central banks and not even the largest one based on current assets. According to Yardeni Research, the People's Bank of China has $5.2 trillion in assets, the European Central Bank has $5.1 trillion, the Bank of Japan has $4.7 trillion, and the Fed comes in fourth with $4.5 trillion.

It’s the height of American arrogance to place so much attention on the Fed. The markets may have been local in the good old days, but they aren’t now. We are in a global marketplace -- one not even remotely controlled by the Fed. Not coming to grips with that new reality may catapult your positions smack dab into the proverbial wall.