Yesterday the FOMC/Bernanke stunned Wall Street and the world by NOT removing the QE/stimulus that they had promised removal since summer.
Economy Is Not Strong
While all assets cheered the move, the reason the FOMC did not remove the stimulus was due to a flagging economy and worry of debt ceiling issues. It is important to remember that the economy is still in need of help, according to the FOMC.
Rates dive and Equities Fly
Almost every asset class available cheered the news yesterday as interest rates fell (bonds rose), equities jumped, and commodities of all colors increased as the dollar weakened (overseas investments made stronger) all inflationary moves. Most including ourselves were stunned at this move after being told repeatedly the stimulus would be removed. Much of the fast money was caught on the wrong side, exacerbating asset moves yesterday.
Financial Times Interview
Yesterday, thankfully before the FOMC fireworks, I had a terrific 30 minute interview with a Financial Times reporter on what to do when you receive or are receiving an inheritance. I will bring you the details of the story soon, but wanted to let you know what an honor it is to be interviewed by the Financial Times (you know …the pink business paper you see on shelves) as they are one of the best business papers covering global events.
Have a Great Day!
PS I am traveling out of the office today!www.jkfinancialinc.com www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225