1st while Charles Plosser is making headlines today with negative comments about QE3, I am reminded about Ben Bernanke’s comment in June (2nd) and (3rd) we have serious doubts on WallStreet about QE3 and Europe.
1. BloombergBusinessweek
Federal Reserve Bank of Philadelphia President Charles Plosser said new
bond buying announced by the Fed this month probably won’t boost growth or
hiring and may jeopardize the central bank’s credibility. Full story at…http://www.businessweek.com/news/2012-09-25/plosser-says-qe3-risks-fed-credibility-won-t-boost-jobs
2. Investors.com (7 June 2012)
“Federal Reserve Chairman
Ben Bernanke said Thursday that more asset buys will be on the table at the
central bank's June 19-20 meeting, but acknowledged for the first time they may
produce ‘diminishing returns.’” Full
story at…http://news.investors.com/economy/060712-614167-bernanke-warns-of-diminishing-qe-returns.htm
3. MARKETWATCH blogs, THE
TELL
QE3 gets a second look
(and it’s a scowl) – (w/more on Europe…it’s baaaack)“Doubts over the effectiveness of QE3 — the Federal Reserve’s third round of quantitative easing — have turned up a notch in the last day or so, acting as a kind of distracting grumbling in the background to the market’s more pointed worries about Spain, Italy and Greece.”
http://blogs.marketwatch.com/thetell/2012/09/26/qe3-gets-a-second-look-and-its-a-scowl/
MARKET
RECAP
Wednesday the S&P 500
finished down about 0.57% to 1433 (rounded).
VIX rose another 9% to 16.81.
NTSM
The
NTSM analysis remained HOLD Wednesday.
NTSM
analysis could switch to a sell soon…or not.
I’d rather not try to guess what will happen. I’ll just run the numbers. All indicators deteriorated some today, but
not alarmingly.
MY INVESTED POSITION
Based on the BUY signal, 6
July, I moved back into the market on 9 July (after the weekend) at S&P 500
1352.
I currently have a 50%
stock allocation overall. For my age,
that is what many advisors recommend as a fully invested position, however, I
am normally much more aggressive. I have
less invested in stocks now because there’s a lot of risk.
