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James Bullard Helps Stocks, Destroys Dollar

Miranda Marquit — Mon, 23 Nov 2009 16:05:39 +0000

The stock market is heading higher today, as part of a wider global equity rally. Earlier, James Bullard, the president of the St. Louis Federal Reserve, and a member of the Fed board, mentioned that he thought that the economic stimulus measure of buying mortgage-backed securities should continue into next year — moving beyond the first quarter.

As one might imagine, investors latched onto this news and took it as a cue to sell the dollar. After seeing gains for the dollar last week, Bullard’s remarks prompted a round of profit taking. Additionally, the comments also helped stocks. Confident that the Fed is willing to continue propping up Wall Street, investors are in a buying mood, sending the stock market higher an hour and a half after opening. The gains do appear to be slowing, though, as day traders swoop in to take their profits from earlier.

However, this week is expected to be a good one for stocks. Investors are hoping that the holiday shopping season, which kicks off with Black Friday the day after Thanksgiving, will help provide some fuel for the fire. With a short trading week, and the news so far good, it looks as though this week, at least, will be a good one for the stock market. We’ll see if it holds if Black Friday turns out to be a disappointment.

Image source: Fletcher6 via Wikimedia Commons

Post from: EveryJoe

James Bullard Helps Stocks, Destroys Dollar

Stocks Heading Higher Ahead of Fed

Miranda Marquit — Wed, 04 Nov 2009 19:05:04 +0000

The Federal Reserve should be announcing its interest rate decision later today, and stocks are heading higher on the assumption that the Fed is likely to keep interest rates near 0%, as well as the expectation that the Fed will keep stimulus help coming in. Indeed, what Ben Bernanke says about economic policy going forward is more likely to influence the stock market than just about anything else today, and expectations that he will play up the fact that we’re only at the beginning of the recovery, and that there will be a continued need for economic stimulus for some time, have the stock market rallying.

Wall Street is hopeful that policymakers will continue to prop up the big companies, and focus on helping the banking system retain its stability. Investors will also be waiting to see what sorts of the things the Fed is mind for ensuring that the economic growth seen in the third quarter will be sustainable. Also of interest is how Bernanke and the rest of the Federal Reserve members plan to withdraw from the stimulus.

Withdrawing from economic stimulus is an important consideration for many, since it will be a delicate maneuver. If the stimulus measures are in place for too long, we could end up with hyper inflation and a number of other distressing economic problems. On the other hand, if economic stimulus is withdrawn too soon or too quickly, the economic recovery could be in danger, and the chances of a double-dip recession increase. With employment still an issue, and the housing market still reliant on the first time home buyer tax credit, though, it is unlikely that an exit from the stimulus will begin until sometime next year.

Image source: Daylife

Post from: EveryJoe

Stocks Heading Higher Ahead of Fed

I’ll Trade You Half of Microsoft for Your Google

Jason Bean — Thu, 23 Nov 2006 03:38:43 +0000

Can you believe it? Google is now capitalized and valued at more than half the value of Microsoft. On the one hand I can believe that the potential for Google to continue making serious cash is huge. If you ever doubt it, just think about what Google really makes money from, advertising. Okay, got that image in your head? Now think back to the movie “Minority Report” with Tom Cruise, remember all the advertising? It was everywhere. That folks is what the future of Google could end up becoming.

Right now Google’s just got internet advertising and starting to expand into some print and radio advertising options, plenty of room to expand into the mainstream advertising areas we’re already familiar with around us.

Source: Google worth more than half a Microsoft on Scobleizer

Post from: EveryJoe

I’ll Trade You Half of Microsoft for Your Google