The Fed continues to threaten to raise rates sooner rather than later trying to curb their fear of excess exuberance in the financial markets. We all know that the Fed wants to return to a more normalized rate structure so that they are poised to lower rates levels if and when the economy falters. However, they are also fully aware that it's virtually impossible to lower rates from 0.25 percent and have much impact on the financial system and the economy.

Don't you agree that their concern at this point in time is misguided? Just look at the fragility of the global economy including the United States. We have had an accordion-like economy with strong quarters followed by weak ones and vice versa for several years now.

The simple truth is that the Fed mandates have to expand from focusing solely on levels of employment and inflation to include what is happening abroad and its impact on all global economies and markets.

The Fed and the United States don't live in a bubble. It's time that it be recognized by Clinton and Trump, too. Both politicians don't seem to get it or at least, not enough. Globalization is a fact of life.

Just step back for a second and ask yourself one simple question, "Are the risks to growth and inflation here and abroad to the upside or to the downside?"

You don't have negative rates in many parts of the world for no reason!

It really is clear that no one is worried about a runaway economy here or even core inflation rising much above 2 percent until 2018, so where's the beef?

Our market is statistically undervalued even with 10-year bond yields of 2 percent, which is 0.5 percent higher than where rates are now. Yes, our economy is accelerating, after a very disappointing first half, with inventory being accumulated after second quarter liquidation contributing 1.5 percent to GNP growth alone. And with accelerated growth comes accelerated earnings growth. Not a bad recipe for higher stock prices.

However, everyone fears that the fed will begin raising rates too soon, trying to stay ahead of the curve rather than behind it, fearing an overheating economy down the road with rising inflationary pressures.

Wouldn't you agree that this is premature?

The real issue and concern for the financial markets should be why the ECB and BOJ have to continue with such aggressive QE and push rates so low, even negative, buying massive amounts of all debt attempting to stimulate growth and move inflation upward closer to their 2 percent targets, too. By the way, none of this is working after several years of trying.

It's time to understand what are their real problems; what are the needed fixes; and where are the European and Japanese economies going?

Then ask yourself why yen has been so strong breaking below 100 to the dollar and why the euro has stayed above 111 to the dollar. I can assure you that their strengths are not due to improving economies but investors taking risk off and moving to perceived safe havens.

Is the Fed blind to those risks to the downside overseas? Do they really want to start tapping the brakes here? Are they misguided now as in December when they first raised rates and markets fell?

I just don't believe it!

I continue to believe that the Fed will hold off until there is a better outlook for the global economies. Remember, too, that the United States is the engine of global growth!

The second point that I want to make is that it is time for Janet Yellen and other Fed officials to step up to the plate and start talking about the need for fiscal, tax, trade and regulatory changes in D.C. to support and stimulate the U.S economy. Monetary policy can't do it alone and has gone as far as it should. The baton has to be passed on to our politicians. I hope that Janet Yellen says something constructive next week at Jackson Hole.

Warren Buffett, Mark Cuban and other noted Democrats also need to speak about these issues, too, rather than just putting down Donald Trump and his policies. Do they support Clinton's view of tax, regulations and trade? I doubt it! But they say nothing. We need leadership from broadly respected people on these issues.

We need an overhaul of the tax system, less regulation or, at least, less constant changes in regulations, which has made planning impossible, and free and open trade where offenders are penalized without much delay.

It is clear that fiscal stimulus will increase regardless of who becomes president, but this is only a temporary boost to the economy without substantive changes elsewhere.

So where do this all leave us?

Despite all of my voiced concerns, the United States is best positioned of all the industrialized economies. Yes, there are problems and concerns, but our financial markets will continue to climb the walls of worry.

The truth is that weakness in the dollar, while temporary in our opinion, will help our trade deficit, raise GNP and boost earnings of our multinationals.

I believe that our yield curve will steepen slightly as our economy accelerates despite huge capital inflows from abroad so I continue to overweight financials and have added more cyclical exposure while reducing the "safe" stocks. Buy only market leaders with great managements with sound strategic winning plans for years to come, strong balance sheets and financials, and increasing cash flows that will be used to enhance long-term value.

So remember to review all the facts; step back, pause and reflect; consider mindset shifts; review your asset allocation and risk controls; do independent fundamental research and…

Invest accordingly!

William A. Ehrman is managing partner at Paix et Prosperite LLC.