Please reload


Please reload



Hurricane “Patient”

July 28, 2015

Recently Ron Paul railed on the American economy, calling it fundamentally unsound. Instead of production, employment or a strong dollar driving growth, language in a press release is the catalyst. Specifically, it was the word “patient” in a release from the Federal Reserve.


“Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy.”


It set markets afire – the Dow gained nearly 800 points in two days, with the S&P also jumping nearly 100 points.


I think this part of the release helped too:

“…it likely will be appropriate to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time.” But the point is – how much money did that language generate? For most people, the economy isn’t so hot. Wall Street and Main Street are almost mutually exclusive institutions.


This Hurricane “Patient” situation identifies one thing clearly – the Fed has a lot of power if it can mutter a few sentences and send markets soaring. To me, it’s a symptom of imbalance.

And as Paul rightly says, the slightest mention of tightening monetary policy sees Wall Street act like “a heroin addict forced to sober up cold turkey.”


The Fed’s release and resulting market behavior indicates that the course remains for a while. Perhaps the record returns will keep going too.


But I tend to agree with Paul, the market corrections need to happen. If not, bad debt will keep getting worse, transforming what is a slight abrasion into a broken bone.

Share on Facebook
Share on Twitter
Please reload


Pennsylvania Office

P (610) 358-8942

F (610) 358-8943

Delaware Office

P (302) 449-0111

F (302) 449-1888


51 Woodland Drive
Glen Mills, PA  19342

291A Carter Drive
Middletown, DE 19709



Check the background of your financial professional on FINRA’s BrokerCheck.

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.

Andrew Wood, Dan Simon and Alison Slezak are Investment Advisor Representatives. Advisory services are offered through CoreCap Advisors, LLC., a Registered Investment Advisor. CoreCap Advisors, LLC and Daniel A. White & Associates, LLC are separate & unaffiliated entities. 

© 2018 Daniel A. White & Associates, LLC. All right reserved. Built by Atwood Sites.

PA OFFICE: (610) 358-8942
DE OFFICE: (302) 449-0111