Hello SOTGC community,
While the financial media is abuzz about CNBC’s “Money Honey” (Maria Bartiromo) leaving for Fox Business Network to rake in a multi-million dollar annual contract, the more important story this week is that the Senate moved one step closer to making Janet Yellen the most powerful woman in the country. She has been nominated by President Obama to become the next Chairman of the Federal Reserve Board (Fed) and although some Republican Senators plan to vote against her nomination, she will be confirmed.
What does this mean for you and your money? If you contribute to a 401(k) at work, no doubt you have seen your statement balance go up a lot this year, especially if you are in mutual funds with significant equity exposure. The Fed has a lot to do with that because they have been stimulating the economy by keeping interest rates low. This has served to increase stock prices. While Bartiromo might be stuffing millions in her own pocket, Dr. Yellen and her colleagues have been spreading the wealth to you and me.
So what should you do now that the Dow Jones Industrial Average crossed the 16,000 mark last week, reaching all-time highs. Are we in a stock market bubble? How can you protect yourself if and when it pops? You can watch my appearance on KUSI’s Good Morning San Diego on Nov 20 where I explained how to “lock in” your gains.