Stock and bond markets are recovering from the spasms felt May 22 to June 24. This week we take a close look at what just happened; review a provocative article on why bond yields may drop further; and re-state the case for investing in Emerging Markets, which have not rallied at the same pace as
Last Wednesday, Federal Reserve Chairman Bernanke delivered testimony to Congress, taking great pains to clarify Fed policy. His comments were well received because stocks moved higher and interest rates retreated. Our first article examines what the Chairman said and what he really meant. Though the economy still may need Fed support to reach “escape velocity” (i.e., where it can grow by its own momentum), our next article by Liz Ann Sonders of Schwab takes a look at the plunging Federal budget deficit and what it means. Finally, we summarize a recent poll by the Institute of Chartered Financial Analysts about expectations over the next 12 months.
Unlike the fictional town of Lake Wobegon, it has not been a quiet week on Wall Street. Virtually every financial asset is down. This week we look at different perspectives on Federal Reserve communications occurring last Wednesday when Chairman Bernanke discussed tapering the pace of bond-buying.
Since May 22, markets have been volatile. This week we explore some of the reasons, review a colorful essay on the effects of Fed policy, and what Fed policy is doing to long-term care insurance rates.
Despite volatility of recent days the Dow Jones Industrial Average and the S&P 500 Index® recently marched to even higher all-time highs. A large part of the fuel is Federal Reserve policy.