So what is my plan of attack?
As we have stated for months, a raise in the rate for the month of September would surprise us. Not shock us. But it would surprise us.
I’m sticking to my guns, and I’m not going to take any actions in any account until the Fed decision is known, and I can evaluate the market for a while.
If you’re new? If I was new I would personally remain cash. I might have some ideas on ‘new-ish’ trades in a short while. Stay tuned.
If you are a client of ‘The Sharpe Report‘, you can see that we avoided the bloodbath of last month, and at the moment, we are gaining bit by bit, day by day. Once we have run through the expected time-frame of this current trade, as we have already discussed, we’ll see if we need to make any adjustments, re-balance, remove or keep the hedge, etc. The position looks like it should weather the volatility very well.
For the income side of things? I will possibly be looking to buy Union Pacific (UNP) for both myself, as well as for our Sharpe Income project. For purposes of disclosure, know that I have owned Union Pacific (UNP) from before the split last year. So I’m just looking to add to an already existent position for myself. For the Sharpe Income project that we run, this will be a new position.
And then again, I may do none of the above.
We just have to wait until we see what ‘The Red Hour’ produces …