The stock markets today had a quiet day. Not much changed in the day because the market is holding its breath for what the new Fed Chairman will enact. Many traders mood for the trading day will depend on what Yellen has to say in her first speech as Fed Chairman. I can't really speculate ion what she will say, my guess it will be something encouraging about the US economy and that they will continue with the taper.
I want all of the quantitative easing (QE) to go away, it just creates a bubble and fake wealth. It also just gave most of the returns to extremely wealthy people who owned stocks. Everyone who owned stocks won out (which should be everybody) but most of the gains went to a few favored stockholders. Not what our government should be doing. I have no problem with them gaining more than others because the works is not fair but the government whose goal is to treat everyone equally should not say who makes money and who loses wealth. QE is also not necessary anymore the economy has recovered enough it is no longer the depths of the recession. It has been a long time from that it is time to not have the support of the government in the market.
Yellen still has a large amount of power over the markets because she controls the regulating system of the market. We as investors have to make decisions based off of current market conditions. I don't liked the idea of having one person controlling so much of the market's movements and possibly changing the value of a stock based off words. She does though and probably will continue to have that power. So hang on every word and parse through it. Good investment choices I'm sure abound in her words.
No comments:
Post a Comment