(as of 7:20 PST)
Markets are digesting
yesterday’s surprise move (or lack of movement by the Federal Reserve). It was a surprise to most when the Fed
delayed its plan to reduce economic stimulus by paring its bond purchases. Stock markets soared, as did the price of
gold, while bond yields plummeted.
Apparently the Fed sees trouble on the horizon that has escaped most
economists. Today’s economic news has
been positive for the most part. Home
sales were up, housing inventories up as well, while the price of homes was up
14% year over year. Jobless claims were
up a small amount. The Philly Fed index,
a key measure of industrial activity came in strong and above analyst
expectations. Leading economic
indicators also were higher, up .7%. It
is hard to know how this market will follow-up to yesterday’s stunning
development. There are a lot of
befuddled investors wondering where we go from here, including this one!
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