The Federal Reserve held its policy meeting last week, announcing no end to its $85 billion-a-month bond purchases. Stocks jumped, with the S&P 500 hitting new highs. Still, the benchmark index was down 0.3 percent for the week, reducing the year’s gain to 25 percent.
In the U.S. and China, manufacturing rose more than economists had expected, suggesting a pickup in the world’s two largest economies. If the U.S. keeps showing signs of accelerating growth, the Fed may indeed have to start tapering its stimulus program.
What follows is our weekly wrap-up with links to Money and Markets articles.
On Monday, Larry Edelson cited three scenarios for gold that every savvy investor needs to keep in mind before buying the yellow metal.
In his Tuesday column, Douglas Davenport dispelled illusions many investors have about China, arguing that U.S. stocks can outperform Chinese equities.
On Wednesday, the Federal Reserve announced it would prolong its monetary stimulus. However, Bill Hall questioned the program’s effectiveness — click here to learn where, according to his analysis, the Fed’s money ends up.
To answer the question whether the stock-market rally will continue, Mike Burnick took a closer look at market valuation. He will focus on two more indicators, trend and sentiment, in the next two weeks.
At the end of the business week, Mike Larson shared his views on the future of QE after analyzing Fed statements and speeches, and explained why he believes the central bank’s bond-buying program won’t last forever.
Best wishes,
The Money and Markets Team
