Vice Chairman Stanley Fischer, the Fed’s #2 official, leads the new committee that will monitor financial stability. It is understood that the Fed’s goal is to avoid the emergence of asset-price bubbles after six years of near-zero interest rates and abundant liquidity.

We at Model Capital Management applaud the Fed’s research and efforts to promote financial stability under the leadership of former chairman Ben Bernanke, continued by chair Janet Yellen. The U.S. housing and credit bubbles that developed prior to 2007 that led to the subsequent financial crisis and severe recession, were not hard to recognize, in our view. The failure or reluctance to recognize these bubbles can only be attributed to flawed Fed leadership at the time. 

About Model Capital Management LLC: we are an investment management firm focusing exclusively on tactical management. Please review the following pages for more information on Model Capital’s approach to tactical management and our tactical asset allocation models/strategies.