federal reserve, interest rates, quantitative easing, us economy, wall street
Following a slow start on Wall Street on Wednesday, US stocks rebounded on news that the Federal Reserve intends to keep interest rates low through to late 2014 – an adjustment of its previous indication that rates would be kept low through to mid-2013. The announcement came as the Fed’s two-day policy meeting drew to a close, and by the end of the day the Dow Jones industrial average had gained 83 points, recovering from its loss of 95 points in the morning trading session. The Standard & Poor’s 500 gained 11 points, after having lost 7 points earlier....
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assets, dodd-frank, financial crisis, interest rates, wall street
It's been a year since the Dodd-Frank bill was signed into law, putting a whole new perspective on the term "too big to fail" and putting the brakes on taxpayer bailouts for failing financial institutions. With the downgrading of the credit ratings of three major banks – Bank of America, Wells Fargo and Citigroup – on Wednesday, it appears that the time has come to test the effectiveness of the Dodd-Frank bill. Commenting on the downgrade of Wells Fargo's stock, Moody's noted that, because the risks of...
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china, economy, federal reserve, interest rates, us markets
Stock market investing is surely not for the faint-hearted, especially in these times where every new day seems to bring a new, and often unprecedented, challenge. Following the announcement by the U.S. Federal Reserve that it would begin buying government bonds in an effort to stimulate the persistently sluggish economy, stocks and interest rates plummeted on Wednesday, reflecting the trepidation of investors with regard to economic recovery. Other factors that impacted negatively on markets included the news from the U.S. Commerce Department that, primarily due to the fall in exports, the...
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bond market, interest rates, us treasury, yield curve
In his book The Strategic Bond Investor, author and bond-market strategist, Tony Crescenzi, notes that a yield curve is “the closest thing the bond market has to a crystal ball”. That being the case, it is a good idea to understand what a yield curve is and how it can assist in investment decisions. A yield curve is a line representing the interest rates (cost of borrowing), at any given time, of bonds with equal credit quality, but different maturity rates. A yield curve is also referred to more formally as the term...
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dividends, interest rates, us dollar
The falling dollar spares no one. The average daily shopping list contains loads of products and services with imported content. Some of us travel abroad every year. Perhaps you have a fondness for things made in other countries. The dollar is an instrument of global trade. China and the Middle East have enormous stashes of dollars. The Fed adds to the mayhem. Crashing interest rates tempt people to borrow more. Much of this money goes into buying stocks and commodities from our adversaries. The dollar is set...
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financial planning, interest rates, mortgage
You could hardly ask for a better climate to invest in your first piece of real estate. That last term has not been swapped with ‘home’ by accident. Investing in commercial real estate is a valid form of financial planning. You could earn future rents far in excess of any stock dividend. It is a matter of choosing sound construction in a growth neighborhood. Wetlands with intact eco-systems could be better still if you have your inheritors in mind.
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federal reserve, financial planning, interest rates, wall street
Regulation is a major part of financial planning. Every country has its Fed. Central Banks are not the only arms of economic governance. President Bush announced the stimulus package himself. However, a President cannot get involved directly in all financial decisions. That is the job of the Fed.
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bear market, federal reserve, inflation, interest rates, recession
God Give Me the Grace to Change What I Can,
The Wisdom to Accept What I Cannot,
And the Wisdom to Know the Difference
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