by Dr Invest
Happy Labor Day! DeJaVu reappears with the world economies waiting for the stimulus that they think must invariably come. Bernanke said... no more stimulus for now, but we will be watching the economy and should it slow we are prepared to act.
Some immediately responded by getting out of stocks and others responded by wildly buying more stocks. Demands are being made of China to do their own stimulus to get their economy going again. It seems that if all other economies inflate their currencies and China doesn't, the other currencies will fall against the Yen.
China is in no hurry to inflate their currency. Yes, growth has slowed in China, but only to 6%. Quite frankly, a stimulus program in China is stupid and they know it! It is just the other countries that think that China must do something.
Although out market is closed, world markets rose in anticipation that World Central Banks have no other options but to stimulate. The stimulus option in 2012 has been largely "smoke and mirrors". No real stimulus package has been implimented and the market has risen almost solely on the hopes of a stimulus.
That's about all there is to report. I remain solidly invested in TIP and BND. (see May) There has been some growth in this position, but competition with the Fed in the purchase of bonds ruins the posibility of great returns for the investor. For now, I am keeping to my investment strategy and expecting a 4 to 6% gain by the end of 2012. Even a 2% gain will beat a CD at the bank, so I am not particularly worried.
Finally, listen to EX-STOCK BROKER Realized most of what he did was bad for clients.
http://finance.yahoo.com/blogs/daily-ticker/ex-stock-broker-realized-most-did-bad-clients-134422604.html
(Note:The above information is for entertainment purposes and not to be used as investment advice.)
No comments:
Post a Comment