Hi readers, this is a special posting before the FOMC. From what i can see, Mr Market seems to be taking the position that the FOMC predictions and speech will be following the scripted tone of transitory inflation. This is in line with my earlier posting of not expecting any surprises.

HOWEVER, if your portfolio is made up of mostly growth stocks and / or bubble stocks and is lacking in terms of diversification. I strongly encourage you to use options to protect your holdings. You can use covered call options or buy put options . Both work equally well.

No one can predict what Powell and Yellen is going to say. Any indication of earlier paring of assets and / or earlier raising of interest rates to before 2023 will cause Mr Market to go into tantrum mode again.