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.
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The market has been going up but for several days, market turmoil, falling stock prices and dropping indexes tell a different story. Be mindful that there are always falling prices somewhere for something. Broadly speaking, stock and market prices have trended up. Or do current market conditions say something has changed? Could this be the start of a more serious downturn?
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.
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.
Ben Bernanke saved investors and the world from a world-wide depression by using the power to the Fed to stimulate the economy. Investors everywhere must know this. One courageous, brilliant and patient man stood between us and the abyss. An imaginative economic magician saw the future and took us there to save America and the world! The stimulus programs of Ben Bernanke have done just that. The ideal person with exactly the right knowledge and ability was in place when the economic alarm bells sounded in 2008. He saved us from again becoming victims of market greed.
Fed Chairman Ben Bernanke began “Taper Talk”. Part 1 of 3 Why does tapering matter? Today we discuss the pending Fed tapering as market reactions and the high volume of strydent commentary continue to confuse investors. The U.S. Federal Reserve Bank continues to pump massive amounts of money into the economy. This stimulus program will have an end. That will be when the economy picks up and shows progress without needing the continuing massive Fed funding.
Tapering describes the planned slow reduction of that programed Fed spending. The current phase of the Fed program has them deeply involved in funding virtually all the mortgage market. The Fed continues buying mortgages at the rate of $85 billion per month.
Anyone can develop the 4 Traits of successful investors: they learn and know investing. They pay attention, use an investment plan, are prepared to decide and act quickly and proactively as needed. They know both investing and markets while remaining attentive to both their holdings and the markets. By paying attention and planning ahead, they can decide quickly and act promptly and proactively as needed. That dependably produces their superior returns while they build greater financial security. You can make the choice of becoming a superior investor.
Headline news warnings and stock market risks explained as possible market overreactions. Reactive trading and emotions can drive market action. At such times, turmoil, not smart investing decisions, drive markets. To avoid being spooked, and trading with your emotions, inform yourself, do your homework and take the long view.
Autos, jobs and the FED Part 2 of 2 in the White Top View series: Key Market Indicators. Part 1, 4 Signals cut through stock market noise introduced these key market indicators. This time auto sales, employment and the Fed or U.S. Federal Reserve funds rate are discussed.
Key market indicators for anyone interested in stock market direction are reports of house prices, auto sales, employment and the FED fund rate. Together, these indicators reliably point to the stock market direction. They are dependable indicators on the collective economic activity of the population. Stock market direction consistently follows the direction of the general economy.