The Fed's decision not to increase interest rates this year and to also stop shrinking its balance sheet by October means that the markets holding the Fed hostage had worked. And it also means that the Fed would have squandered its opportunity to build its monetary policy ammunition in store for greater leverage comes the next crisis.
It means the likelihood of the markets crashing this year has now subsided and while we can breathe a sigh of relief that the Big Kahuna may not yet be upon us, we cannot take for granted that the markets wont have its challenges this year.
As far as allocation is concerned, it does not persuade me to move more into equities but I can take a more patient stance when I have selected stocks instead of taking early liberty to take profits when presented.
Yet it is still a game of careful stock selection game as broad based market uptick is unlikely to present itself just yet.
