Friday, March 8, 2013

Great unemployment rate number today that I suspect will cause a moving up of the date that QE ends. As such, this can be a mixed message.  Yes, unemployment is lower which is indicative of better economic growth (and thus higher stock prices), but the Fed has been pumping in liquidity and they will end the program which will be negative for stocks.  The ideal scenario for the fed would be for this to be a smooth transition, but it rarely is.

All this means is that it can be a bit jerky, but I expect stocks to remain supported and go up while bond yields should start going up a bit.



No comments: