The problem with procrastination in any policy decisions and personal decisions is that delays narrow down the effectiveness of policy outcome. Powell can delay policy action as long as he likes but when inflation roars higher and he then starts to bring forward rate rises, it would probably then require a higher and faster quantum jump in rate rise to contain it without assurance on its effectiveness. Likewise Gladys may decide to introduce a harder lockdown with more evidence of virus spreading uncontrollably but by then a harder lockdown may well not be able to do the job short of a less palatable draconian style lockdown.
Anti Vaxxers can choose to delay or not proceeding with their jabs but when the virus spread gets dangerous enough and they choose to change their mind , they need to be aware that the vaccine does not become effective until a week or two later.
Investors and traders alike know where we’re at as far as the market is concerned, it’s elevated heights is concerning but the high risk takers would be prepared to wait for the penultimate moment to bail out , along the mindset of the anti vaxxers to wait for the last minute to ditch their long held positions, but probably not realising that by then everyone would be bailing out at the same time and selling gets very painful, then face a predicament of either waiting for longer which could result in prolonged pain or taking the pain at the outset cutting the umbilical cord.
Understand Where We’re At and Be Ahead of the Curve. And learn from Gladys.
