The Fed will start the FMOC tomorrow to determine if a rate hike is necessary. You know my personal view about the likelihood and personally I'd say there is a zero chance that Yellen will rate the interest rate at this meeting. The market has put a 20% for a rate hike. So overwhelmingly the expectation is there will be no rate increase in September. But there is of course no guarantee and no one can be sure about the decision beforehand. There is always a chance the Fed and Yellen may surprise everyone to decide to raise the interest. If she dose so, she would be my hero to defy the political pressure to do what she is supposed to do for a long overdue rate hike. Again, I really don't think it is possible but I'm nobody and can very well be wrong. So what will happen if the Fed dose raise the interest? It would be a huge surprise and market will likely face a severe selloff. In addition, gold and Treasury bonds will get killed and VIX will shoot up to moon. We'll likely see a huge turmoil in the market. I really don't think Yellen has the gut to do so but again it could happen. If you want to be prepared for the unthinkable, tomorrow is the last chance to do something to hedge: short gold against your long positions, buy some VXX for volatility and short Treasury by buying some TBT.
Consider you are warned!
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