Fed meetings are always good for the market...said nobody ever. This week we had a lot of noise from the Fed's June meeting when the hot topic was again inflation and and an overheating economy. Fed Chair Powell said they had begun "talking about talking about" a plan for decreasing the multi-billion dollar asset purchases the Fed started during the pandemic (the punch bowl) and that at some point, these asset purchases (propping up the economy) will have to end. This is called tapering and the market is throwing a taper tantrum because of it. Rising interest rates are also now on the radar, as early as next year. The economy is humming! But "take all of this with a grain of salt" said Powell. Billions of dollars going away to prop up the economy is a grain of salt? Markets don't take any statement with a grain of salt and that's why we're seeing the worst week in the Dow since January. That's the bad news. But it's actually good news. Good news for 2 reasons. First, the seemingly endless monetary stimulus needs to end for our market economy to work again. Yes, this will lead to bumps in the road as supply and demand forces take over but the economy can't live on the dole forever. This would lead to unsustainable debt, currency devaluation and overall bad stuff happening to the strongest economy in the world. The second reason this is good news is that with even the thought of stimulus going away, market leaders are leading again and not selling off like the rest of the market. This is what should happen . Market leaders don't rely on government stimulus to operate - in fact, the best companies lead the economy forward and by the way, they don't need a dime of government money. Take a look at the 2 charts below. Business as usual in the Nasdaq 100 which is comprised of the market growth leaders (#AAPL, #GOOGL, #AMZN, #MSFT, Etc.). It actually looks like the Nasdaq 100 might break out to new highs and this would make complete sense. The Dow however, is another story. Here we see a double top and a break through a long-term support channel. The "reflation trade" as it's called, is over. Those companies who have had a run in 2021 because of a re-opening of the economy (no matter their balance sheet) are now going back to a floundering (without stimulus) and the companies who have billions of available cash and are sustainable on their own, are flourishing. Market leaders are leaders for a reason. Yes, they will underperform for short periods of time but long-term there's no beating them, ever. There couldn't be a better case to be made for Stock PRO, which is a portfolio of market leaders. In fact, all of the PRO accounts are built on the basic idea that market leaders are the only way to go long-term. We're seeing that as the Fed starts "talking about talking about" taking the punch bowl away because the economy can finally go it alone. Thank goodness for this - it's about time (to talk about talking about it).