Tag Archives: equities

Fed Tools: The US Federal Reserve’s Toolbox

This past week Janet Yellen, Chairwoman of the US Federal Reserve, gave her report on the state of the economy. The theme was “steady as she goes” with only minor adjustments to monetary policy. Here are some highlights from her text:Continue Reading

How to Protect Your Portfolio

With the stock market averages making new highs every few weeks, investors are becoming increasingly edgy about what will happen next. These are unsettling times. We have a high US national debt running about $17 trillion. Added to this the US Federal Reserve has bought $4 trillion of bonds and mortgage backed securities from the big banks. They are now in the process of reducing their purchases, but they still must sell these securities back to balance their books. In addition they must continually issue new bonds to finance our debt.Continue Reading

Market Update May 15, 2014

So far 2014 has proved to be quite frustrating and confusing. We ended 2013 on and upbeat note with the Dow and S & P making new all time highs. At the time only 16% of investors were bearish on the market. In December 2013, then Chairman, Ben Bernanke, of the US Federal Reserve started to taper bond purchases by $10 billion per month.Continue Reading

The Fed’s New Policy Changes. What are they Telling Investors?

Could the Fed’s new policy changes signal the end of the bull market? There is a often quoted saying: “Don’t fight the Fed.” If that is the case, perhaps it’s time to step back and analyze exacting what took place this week. The Fed uses two ways to communicate with the public. It holds eight meetings each year. The Chairperson, in this case Janet Yellen, issues a consensus statement on overall Fed policy and issues some guidance going forward. The second and equally powerful communication comes from the minutes of the Federal Open Market Committee (FOMC) whose job it is to oversea the Fed’s market operations and steer interest rates in line with committee consensus.Continue Reading

Investing in the Financial Services Sector

Since the start of the new year the stock market has been on a bumpy ride with sharp ups and downs. There is an old adage that says: “It doesn’t make any difference who wins and loses, your brokerage firm will always make their commission. The same is true for retail transactions. Whenever you use your credit card, the card company makes money. With that in mind, let’s look at the key stocks in the Financial Transaction Services Sector. These are companies that service large banks, brokerage houses and retail purchases. Here are some stocks that have been moving higher. (Barchart.com)Continue Reading

Growth Stocks for 2014

We are in March now, with a bumpy ride in the past couple of months. The indices were hit hard and now have bounced back to their old highs. The bulls are looking for more buying here to punch the averages into new high ground. Whether a move into new highs is the real thing or just a bull trap remains to be seen. Meanwhile, we’ve had time to do some searching for growth opportunities in 2014.Continue Reading