Interest Rate Paranoia

It seems that the financial media is currently consumed with short-term interest rates, persistently and continuously over-analyzing the prospects for even the smallest shift in Federal Reserve Board (FRB) thinking.

This is not useful.  Investors are likely to be best served by developing, and then sustaining, a long-term investment strategy that suits their specific circumstances.

The FRB is going to reduce interest rates if the economy begins to weaken and increase interest rates if the economy begins to strengthen.  Period.

Over emphasis on perceived minute short-term shifts in FRB sentiment is about as useful as watching the half-time show for clues as to how the game will end.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA