Janet Yellen became one of the world’s most powerful players when President Barack Obama appointed her Chair of the U.S. Federal Reserve Board. What expectations do we have? She carries more financial sector influence than any other civil servant in the world. Questions abound over Fed policy, financial stability, Mega-bank and financial institution regulation, asset bubble control and relations with Congress.
Nelson Mandela taught us. He changed himself, his people, his nation and our world; by changing, learning and acting we overcome all barriers including fear
You can ride the tapering groupthink higher. Groupthink can produce mindless selling triggered by emotional and knee jerk reactions to tapering talk. Made without any critical thinking, that behavior can produce stock and bond market turmoil. Any selloff can work in your favor. Times of turmoil and volatility produce excellent buying opportunities.
Following tapering groupthink could cost stock market investors! Tapering groupthink relates to pending changes in the FED’s quantitative easing (QE) program. Market reaction to the changes can take money out of your pocket. The tapering will definitely and significantly affect markets.
After printing a sea of yen, Japan will add to the market and economic stimulus by tapping a huge ocean of savings. Such historic changes make Japan a buy for investors because: 1 Japan has reversed a long standing policy and begun printing an ocean of stimulus money and 2 a new pending NISA program a government created investment program gives equities access to an ¥8 trillion ocean of private savings accounts.
At the Senate confirmation hearing into Yellen’s appointment by President Barack Obama she articulated her vision of future Fed policy. Anyone listening as I did could come to the same realizations. The continuation of established Fed policies will mean markets will continue going up.
Presuming an already uptrending or bullish market, a strong bull run for an individual stock needs momentum to continue upward price movement for any significant time. The bull icon serves interchangeably to represent a rising market, an investor buying long or the rising stock play itself. At such times we can say the bulls or herd runs as prices, volumes and investors charge ahead! At a minimum, momentum needs both an increasing price for the stock and an increasing volume of shares traded. Simple basic trading of a momentum play means buying a rising stock that on most days continues rising or trending to ever higher prices. Profitable momentum play execution requires trading out or selling the stock at the higher prices. Most such plays unfold over a matter of weeks or a few months; few extend longer than a year.
Successful investors consider risk, reward and the investor’s knowledge and ability before investing. Income, value and growth are all basic approaches to investing.
Fed Chairman Ben Bernanke has the answer: From the dawn of time the business cycle has boomed and busted. For any product or service we humans endlessly seemed destined to repeat the same pattern. Be it a company or economy we cycled endlessly through extremes of expansion and contraction.
Consider the possibility that Ben Bernanke knows the way to smooth this cycle and put prospects of greater prosperity back on the table.
Wealth Building Step 3 – Learn Investing Basics. Today’s White Top View post concludes our introduction to the three proven steps to wealth.
After covering the critical 1st step, debt control, we continued with the essential 2nd step, saving. Now we turn our attention to the wealth building 3rd step, learn investing basics as the best way of building your wealth.