Financial media pundits have been breathlessly speculating lately about who the next Fed chair will be.
Yellen again? Will it be Cohn? Warsh? Or... somebody else?
I'm sure it's something that you, like me, have been spending sleepless nights thinking about.
Well... maybe not.
But the media needs a "topic du jour" to get us all to watch the birdie and divert us from the only fact that matters...
That the Federal Reserve is getting ready to knock the markets for a serious loop. The "fix" is in. That outcome is inevitable.
Still, this horse race the media has set up ("Who will win?!") is pretty entertaining. So I'm going to handicap it for you.
More importantly, I'm going to show you what you really need to keep an eye on to make sure your money's safe.
The Fed Has Declared Its Intent to Sink Stocks...
...But if you and everybody else in the public are selling, who will Wall Street sell to?
How will the sharks and shakers of Wall Street get their long positions whittled down to a manageable size?
How will they build up short positions, so that they can profit when the bear finally emerges from his den?
They need to keep the public on the buy side of those trades, for crying out loud!
So they divert your attention.
Does it really matter who will be the next Fed chair? Not in the least.
There are no radicals in the bunch of names that have been floated to replace Yellen except Yellen herself.
The rest of the "horses" in the race are all members of the Washington-Wall Street axis, the establishment echo chamber.
Two are front-runners; the rest are dark horses.
Let's see if we notice anything in common in this not-terribly-crowded field. Or if there are any signs that any of these people will be revolutionaries in the mold of Paul Volcker, the 6'8" giant of central banking.
About the Author
Financial Analyst, 50-year charting expert, finance + real estate pro, and market analyst; published and edited the Wall Street Examiner since 2000.