The rats are fleeing the sinking ship that is the US economy. The regional Presidents of the Fed, who affect the economy far more than POTUS does, are busy dumping US dollar denominated securities ahead of the Fed’s expected decision to taper off on buying bonds and securities. This policy saw the Fed propping up Wall Street by purchasing stocks, bonds, and securities using dollars that they were creating out of thin air. Worse, they were purchasing those items from their own personal accounts.

This policy of using money created out of thin air has artificially propped up stock prices for years. It has also apparently been lucrative for the officials at the Fed. Now that this policy is coming to an end, the market will take a hit.

Now the officials at the Fed have decided to come clean and get out, coincidentally at the same time the Fed is to stop buying. I have a friend who is an executive at a large New York bank. He is prohibited from doing this, and his stock purchases are watched closely by the SEC to prevent insider trading to the point where he doesn’t bother because the bureaucratic hoops are too onerous. The people in the government are apparently exempt. (Yes, I know the Fed is an NGO, but that is smoke and mirrors)

I only have a few assets still in the market. A 401K, and a couple of stocks that pay dividends at the end of the quarter. I am waiting until the dividends pay out, then those stocks are gone as well. I’ve held them for over a year, so I only pay the long term capital gains rate on the profits.