Why The Fed Didn't Taper – September 2013

Byinfo@50park.com

bernankeWhy The Fed Didn’t Taper:
9/22/2013
Two reasons: Fits their Agenda, and a Simple Cost/Benefit Analysis. Bernanke’s worst case scenario for continuing QE is hyper inflation, which is currently a nonevent. Meanwhile, the upside of continuing QE: Help the Economy, Create Jobs, and Raise Asset Prices. Since the worst possible scenario is hyperinflation (and we are no where near that right now). According to their logic, Why Would The Fed Taper Now? Of course, we feel differently about their “logic” but that is a story for another day.
 

JOIN OUR FREE NEWSLETTER TODAY &
GET POWERFUL IDEAS & MARKET INSIGHTS
DELIVERED DIRECTLY TO YOUR INBOX

Similar Posts

  • Bulls Gobble Up Stocks As Volume Recedes

    Byinfo@50park.com

    The major averages advanced on Wednesday as the greenback slid to a 14-year low against the yen after the latest round of economic data was released. As expected, volume, a critical component of institutional demand, was lower than Tuesday’s levels ahead of the the Thanksgiving day holiday. The stock market will be closed on Thursday and is slated to close early on Friday (1pm EST) in oberservence of the holiday. Advancers led decliners by over a 2-to-1 ratio on the NYSE but trailed by a narrow margin on the Nasdaq exchange. There were 22high-ranked companies from the CANSLIM.net Leaders List making a new 52-week high and appearing on the CANSLIM.net BreakOuts Page, higher from the 12 issues that appeared on the prior session. In terms of new leadership, it was encouraging to see new 52-week highs outnumber new 52-week lows on the NYSE and Nasdaq exchange.

  • 7 Things That Concern Me About This Rally- Right Now

    Byinfo@50park.com

    1. We have come too far too fast. How many times do you remember seeing the SP500 soar 17% in 3 weeks (or know of it ever happening in history)? And the kicker- the move has been on below average volume! Moreover, if the market is to get back to 1370 (2011 highs) by year end- it will have to move 28% from Oct 4- Dec 31. Possible, but probable?
    2. Nothing has changed- the “fundamental” mess that sent a slew of risk assets lower over the summer (i.e. US and EU debt issues, anemic economic growth, etc.)- are still unresolved… Everyone (right now) is focused on Greece. However, even if Greece is “handled” it does not address the broader issue: The other PIIGS are broke!
    Don’t Be Left Behind!
    Always Know Where The Leaders Are!
    FindLeadingStocks.com
    3. Most bear markets last 18-24 months- not less than 1 day. The S&P 500 officially hit bear market territory on 10/4 (down 20% from its 2011 high) and that lasted for a tenth of a second because that was the exact low for the year (so far). Normally, the 18-24 months allow stocks to reset their bases and paves the way for new leadership to emerge.