Despite billions in bond-buying "quantitative easing" and near-zero interest rates courtesy of recent Fed policy, Americans have stashed $1.8 trillion in low-yield accounts since the QE program started in 2008.
It's a failed stimulative policy that has left a shocking $10.8 trillion on the sidelines. But when it comes to investing in stocks in particular, the news gets even worse.
This trend is truly ominous…
GameStop, Gap, and Shake Shack Headline Today's Stock Market News
Today's stock market news, August 22, 2014: With members of the U.S. Federal Reserve and notable economists meeting in Jackson Hole, Wyo., investors await new insight today (Friday) into when the central bank might raise interest rates and plans to sustain growth in the U.S. economy. For the first time, protesters have descended on the small ski town, questioning the Fed's policies and the "so-called" strength of the U.S. economic recovery. Fed Chair Janet Yellen will speak this morning.Here's a list of today's top stock market news...
The Search for Yield, Emerging Markets, and a Wacky Divergence
Let's talk a little more about divergence - as in wacky divergences.
Last time, we looked at divergence through the lens of interest rates and how rates - principally measured by the yield on the U.S. Treasury 10-year note - were going lower when they were expected to move higher as the Federal Reserve tapers its monthly bond purchases.
But there's another divergence at work, and it strikes me as dangerous.We're talking about the rising prices of emerging markets stocks and bonds...
Feds Finally Put Their Scopes on the “Too Big to Jail”
Late last month, depending on how you look at it, either something wonderful happened - or the feds continued their cowardly, conniving ways.
A group of federal prosecutors met in Washington and in New York with various financial regulators to discuss filing criminal charges against and coercing guilty pleas out of two giant banks. This looks to be a historic occurrence.But two things say we shouldn’t pop open the champagne just yet...
What Happened at Today’s FOMC Meeting
The Fed wrapped up a two-day policy meeting Wednesday with little fanfare and little investor reaction. There was no press conference following the Federal Open Market Committee (FOMC) meeting this month - just a news release.
No surprises were expected Wednesday afternoon, and no surprises were delivered. Benchmarks were little changed ahead of the Fed’s statement and modestly higher after.Here’s what transpired at today’s meeting and what it means for the markets.
Janet Yellen's Speech on Monetary Policy: Three Big Questions Answered
Janet Yellen gave her first speech on monetary policy today (Wednesday) since assuming her position as chair of the U.S. Federal Reserve on Feb. 3, 2014.
While cautioning that the economy still needs the central bank's support, Yellen stated that the nation's economic recovery will be nearing completion within two years.Get the full text of Janet Yellen's speech here.
Stock Market Today – Banks Behave Badly, U.S. Energy Boom
Top stock market news today, March 28, 2014: The Dow Jones Industrial Average fell 4.76 points to finish at 16,264.23. The Nasdaq dropped 22.35 points finish at 4,151.23, while the S&P 500 slid 3.52 to close at 1,849.04.
Meanwhile, gold prices fell $8.70 to close at $1,294.70 - below the $1,300 threshold for the first time in six weeks.
Friday's data will center on consumer income in February, an examination of February consumer spending, and a much anticipated look at March consumer sentiment.To continue reading, please click here...
Today's FOMC Meeting: Data-Dependent and Dovish
The end of today's Federal Open Market Committee (FOMC) meeting included fresh dovish language in its policy statement - but the market-friendly attitude failed to excite investors who were hoping for more.
As widely expected, the U.S. Federal Reserve announced it will stay the course on its bond tapering. Anticipated - but not as expected - the policy statement shed some light on eventual interest rate hikes.To continue reading, please click here...
The Five Most Ridiculous Revelations from the Fed Hearings
On Friday, the U.S. Federal Reserve released the transcripts from its vital meetings over the state of the U.S. economy from 2007 through 2009.
The transcripts provide a staggering glimpse into the world of a central bank in crisis, or at least the inability for all parties concerned to grasp the problems at hand.
Here are the five most ridiculous takeaways from the Fed Reports.To continue reading, please click here...
Janet Yellen Sticks to the Script (Here's What It Means for Investors)
And just like they did for her predecessors, the markets hung on every single word.
Except in this case, nobody (and I mean nobody) expected any major fireworks. What they were looking for instead was a confirmation that it would be "business as usual."To continue reading, please click here...
- Five Important Things Federal Reserve Chair Janet Yellen Said to Congress Today When freshly installed Fed Chair Janet Yellen went before Congress yesterday, she mostly followed the script written by her predecessor, Ben Bernanke. But now that she's in charge, everything she says will carry a great deal of weight. Here are five key takeaways from Yellen's testimony...
Today's Stock Market News and Earnings Calendar
Today's stock market news, Feb. 10, 2014: The markets recovered last week after a choppy start to February trading. On Thursday and Friday, the markets dismissed disappointing unemployment numbers and tepid economic data. The S&P 500 increased 2.6% over the two days.To continue reading, please click here...
- This Has Been Making Investors Rich for 140 Years People are viewing the end of stimulus as a sunset. "My, what a wonderful day we've had," they say. What they should be doing is investing for tomorrow's dawn - the turmoil we're seeing now as part of Yellen's arrival is actually par for the course. It's also a great time to lock your sights on four companies that will lead the way when the smoke clears... Full Story Read More...
- This Chart Will Save You from a Dangerously Popular Delusion There's a very dangerous meme making the rounds. It goes something like this: The economy is improving, therefore the Fed's going to taper... and, when it does, the economy is strong enough to endure the withdrawals that will come with it. Don't fall for it. Nothing could be farther from the truth. Any amount of stimulus reduction will indeed trigger a "taper tantrum." This chart is all the proof we need...
- The Chart the Federal Reserve Doesn't Want You to See While the Federal Reserve is going full steam ahead with its money printing, a rule that applies to all central banks says it should be doing the exact opposite. Apparently the Fed plans to keep its collective head buried deep in the sand until everything blows up. Here's the chart the Fed wishes didn't exist...