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By Ben Baden
New research shows how the Fed's quantitative easing programs have given stocks a lift
Investors may have Ben Bernanke to thank for the rally that's taking place in the stock market.
From
"Most of the 47 percent stock rally during the past two years came on days when the Fed pumped money into markets through bond buying, according to data compiled by
One of the goals of the Fed's program is to push investors out of safer asset classes like treasuries and into riskier sectors like stocks. Keith Hembre, chief economist and investment strategist at
Many retail investors may be missing out on the stock rally because they've clung to the perceived safety of bonds. As Investor's
From IBD: "In the 12 months ended Dec. 6, shareholders yanked a net $71.3 billion out of U.S. stock funds, according to TrimTabs. At the same time, investors have shoved a net $269.9 billion into bond funds. Much of those bond inflows came from stock funds and money market funds. That shift out of U.S. stock funds occurred despite a rallying market, in which the S&P 500 zoomed 12.3 [percent]."
In the story,
Investor's
Commodities are also expected to get a boost from the Fed's buy-back program.
For much of 2010, all types of commodities--from precious metals like gold and silver to oil--seemed to move in unison. That's beginning to change.
From the
WSJ: Commodities' Paths Diverge
Available at Amazon.com:
Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back
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Investing - Fed Moves Boost Stock Returns | Successful Investing
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