Easy money was made in 2009; when Bernanke had flushed the system with Quantitative Easing. In 2011, market volatility and jittery overwhelm investors, as they are divided between market pundits calls. The Fed had been largely very responsive and swift in its actions, and it is the general embrace of the market during the Lehman debacle which prevented the economy from the great plunge. The QE1 and 2 did help to avert the dreaded D word, and it seems that the markets are waiting for the next QE3 to exit from its bipolar nature which we are witnessing now.
What is your position in the market now? Take a vote here and you can view your fellow voters’ results on the same page.
Key takeaways:
Same meeting last year where Bernanke hinted the QE2 program, thus the possibility begins to tip in favor of QE3 for the Aug 26 meet up
Economists revised growth forecasts to discouraging levels, GS economists “now see third quarter GDP at 1 percent and fourth quarter at 1.5 percent, both down from 2 percent”
After precipitous drop for most stocks and DJIA took the lowest plunge to 10600 on Aug 8th, the Fed made a swift response after Aug 9th FOMC meeting, “surprised the markets by stating that the extended period of time it expects to hold rates at very low levels is through mid 2013”
Doug Cliggott, U.S. equity strategist at Credit Suisse opined "But in retrospect, I actually, as a citizen, am really disappointed as to how little impact it had on economic growth. It may have been that outcomes would have been worse." Consider how big corporations are hoarding cash, case in point: Apple which has $25bil in cash and cash equivalents sitting on its balance sheet with no debt (Source: http://bits.blogs.nytimes.com/2008/10/21/read-my-lips/)
Read more, Markets Watch Fed for Hints of New Stimulus as Views on Economy Dim
Note: Italics copied in verbatim
What is your position in the market now? Take a vote here and you can view your fellow voters’ results on the same page.
Key takeaways:
Same meeting last year where Bernanke hinted the QE2 program, thus the possibility begins to tip in favor of QE3 for the Aug 26 meet up
Economists revised growth forecasts to discouraging levels, GS economists “now see third quarter GDP at 1 percent and fourth quarter at 1.5 percent, both down from 2 percent”
After precipitous drop for most stocks and DJIA took the lowest plunge to 10600 on Aug 8th, the Fed made a swift response after Aug 9th FOMC meeting, “surprised the markets by stating that the extended period of time it expects to hold rates at very low levels is through mid 2013”
Doug Cliggott, U.S. equity strategist at Credit Suisse opined "But in retrospect, I actually, as a citizen, am really disappointed as to how little impact it had on economic growth. It may have been that outcomes would have been worse." Consider how big corporations are hoarding cash, case in point: Apple which has $25bil in cash and cash equivalents sitting on its balance sheet with no debt (Source: http://bits.blogs.nytimes.com/2008/10/21/read-my-lips/)
Read more, Markets Watch Fed for Hints of New Stimulus as Views on Economy Dim
Note: Italics copied in verbatim
