In a so-called seasonally light week of events, earnings, and Economic numbers, we decided to also go light with our charts of fun, here and here. Bernanke turned a light week into a very important one.
Bernanke Begins the Taper
On Wednesday the FOMC lead by Ben Bernanke as outgoing chair (Janet Yellen takes over at the end of January 2014) found enough evidence in the Economic tea leaves to slow the stimulus currently in the form of $85 Billion in monthly fixed purchases, artificially lowering interest rates (lowering from $85 Billion to $75 Billion monthly.)
Markets cheered more than we expected and interest rates have behaved post Bernanke taper. We have been wanting this to begin since summer and were very unhappy when the FOMC passed just before the government shut down. Maybe the relief we felt was also shared by other market participants and they responded by bidding markets higher. Time will tell!
TODAY IS FRIDAY and that means the end of another terrific week and the beginning of a Holiday Shortened two weeks. Next week the office will be closed on Christmas through the weekend. The following week is also a partial week with New Year’s landing in the middle. Suffice it to say money will be moving MUCH slower as skeletal crews will be manning all stations.
We will remain lightly tethered and ask if you have an emergency you email us!
Remember to spend time with those special in your life …. it seems only minutes ago we were welcoming all to 2013!
Best wishes and Season’s Greetings!!!
John A. Kvale CFA, CFPhttp://www.jkfinancialinc.com http://www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225