Whenever tapering begins, the Federal Reserve will still face the bigger challenge of unwinding its $4 trillion balance sheet. That will shape the market and economy for years to come.
With Fed money still rolling in, look for another six weeks of gains as a market that’s already advanced 25% this year melts up. Then get ready: A meltdown could follow.
The Fed is no more out of ammo than Clint Eastwood in his prime. And with the economy looking shaky, don’t bet that it will pull back on stimulus anytime soon.
Assuming the shutdown ends without disaster, investors can expect a rally into December. But then old worries, like China and the Fed, will creep back in.
Odds are, the mess in Washington will be resolved short of an economic collapse. And investors who play it right could even turn a profit. Here’s how to start.
So far, the U.S. government shutdown (and similar political deadlock in Italy) hasn’t rattled the market. Here’s a look at how much calm we can expect before the storm.
Expect big short-term shifts among markets and assets as traders try to keep cheap money at work by maximizing rewards while limiting risks.
Seeking a balance between downside risk from bad news and the upside possibilities if trends break in a favorable direction.
To a greater extent than usual, the movement of currencies is driving the prices of global stocks and bonds and is shaping monetary policies in key emerging markets.
A modest tapering of the Fed’s stimulus could come next month and produce a temporary rally in a variety of income vehicles.
Yield hunters may be tempted to shun stocks ahead of the Fed’s tapering. But companies likely to boost their payouts remain attractive.
The market is due for a correction. But even if it gets one, stocks should resume rallying once the immediate crises are addressed.
The recovery from the financial crisis has produced a raft of unintended consequences. Quite possibly the biggest is the absence of inflation and the emergence of deflation.
Don’t be fooled by the huge run in the US stock market and the rebound in the housing market: The financial crisis never really ended, and its effects continue to roil the global economy.
The slowing of the world’s second-largest economy is sending shock waves around the globe. Here’s what investors need to watch for as they try to stay out of the storm’s path.
Understanding why global economies slowed simultaneously is the first task in devising an investment strategy for the decade ahead.
The Fed’s campaign to support asset prices will end, thought not overnight. Until details of a new guarantee emerge, expect volatility.
Amid rumors that the Fed chief is on the way out, Wall Street is scared of losing the support Bernanke has been supplying to stocks.
It may be tempting to try to get out front of the rally that would surely come when recent turmoil simmers down. Problem is, trouble is often followed by more trouble.
While the financial system appears inoculated against a global crisis, emerging markets are increasingly vulnerable. And a there’s at least one scenario in which a local crunch could trigger a global crisis.