It is september 20th and we are getting closer to find out if there will be a rate hike or not. My belief is there will be no rate hike but I have a plan for my own portfolio if they do. This year I have been purchasing Gold and Silver mining shares, with the majority of them purchased in the first 4 months of the year. I have seen great returns of around 200% to this day. The problem is if there is a rate hike, that could damage my portfolio greatly or even wipe it out if it creates the current bull market in gold to turn out to be a bear market rally, which is still possible at this time. My plan if this happens is to sell all my mining shares, which I am in 100% for my positions in the market, so I can have all cash and buy back at a later date or short the market. If gold breaks the support level it currently is close to, I will be thinking about selling and buying back at a discount. If the rate hike happens, I will be most likely taking that cash to short this market assuming gold goes down with the market, which it would appear is likely to happen judging by the other week when the fed mentioned hiking rates and it dropped the stock market 400 points, and gold and oil went down for that ride as well. The stock market does show signs for a top at the moment, and when it falls, it will fall fast I assume just as it did the first time they hiked rates. Volatility will be a good play if this happens.
This is how I see the market, and how I plan on playing it. It will be an interesting two days to see what happens with all of the markets. I'm excited to watch, the markets are going to explode one way or another. Thanks for reading.
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