AAII Investor Update: The Fed Pauses, Plus William O'Neil and the CAN SLIM Strategy

Below is the latest AAII Investor Update including their comments on this latest pause from the Fed this past Wednesday, as well as a tribute to William O'Neil who passed away last month at the age of 90.  For those of you who work for the government or in finance, enjoy your day off tomorrow for Juneteenth.  

Investor Update

Thursday, June 15, 2023

AAII Investor Update: The Fed Pauses, Plus William O'Neil and the CAN SLIM Strategy Dear Member,

Yesterday, as most of you know, the Federal Open Market Committee (FOMC) kept interest rates unchanged. It was the first time that interest rates haven't been raised in 11 meetings. The so-called dot plot, which graphs committee members' expectations of future interest rates, suggests that yesterday was a pause and not a halting of rate hikes. The majority of committee members expect the target range for rates to be at least 5.50% to 5.75% by year-end. This is 50 basis points (bps) higher than the current range of 5.00% to 5.25%. As of this afternoon, the futures traders were pricing in a 67% probability of a quarter-point interest rate hike (0.25%) being made at the July meeting according to the CME FedWatch Tool. Traders are not pricing in a second interest rate hike occurring later this year. As always, those odds are very much subject to change.

O'Neil's Strategy and the AAII Screens Based on It As I mentioned in last week's Investor Update, William O'Neil died on May 28, 2023. He was 90 years old. O'Neil had a long career in finance. He started as a broker with Hayden, Stone and Co. in 1958. He went on to start his own firm, William O'Neil + Co., then Daily Graphs in 1972—the precursor to what is today MarketSmith—and Investor's Business Daily (IBD) in 1984. O'Neil's first article for the AAII Journal was published in April 1999 (Growth Stock Selection: Covering All the Analysis Bases). He went on to write five more.

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