The funniest MSM economic article I have read in a while...
U.S. stocks climbed on Thursday, propelling the S&P 500 to a record close, after Federal Reserve Chair Janet Yellen said the central bank would probably continue tapering its asset purchases while tracking data to figure how much recent softness in the economy is due to the weather.
"Reduced tapering would be very negative to the market. We made a change in December to good news is good news," said Randy Frederick, managing director of active trading and derivatives at Charles Schwab.
So got that- Yellen says more taper, Market says more taper bad, stocks end on record high.
J.C. Penney jumped 26 percent after it projected a rise in yearly revenue and bigger margins. Sears Holdings gained 6.5 percent after the retailer posted a lower fourth-quarter loss.
Got that -you project more earnings, the stock goes up. You loose money, but less money than you thought, your stock still goes up. Hmm, I think I see a pattern..
Companies to avoid, Foreman believes, are those in the commodities business, such as Alcoa and Joy Global. Despite the appeal of low valuations, companies in the sector "all benefited from the big commodity boom that China engineered, and now that's behind us," he said.
"The Chinese are not going to build more empty office buildings and trains that go nowhere; that era is over," Foreman added.
Yeah, thats right, The Chinese were driving that commodities boom. Don't buy anything real like food or oil.. Better go into stocks. They are going up!
but wait, there is more:
The dollar reversed lower against the currencies of major U.S. trading partners and the yield on the 10-year Treasury note fell 3 basis points to 2.643 percent.
but
Gold futures for April delivery gained $3.80, or 0.3 percent, to $1,331.80 an ounce; crude-oil futures for April delivery fell 19 cents, or 0.2 percent, to $102.40 a barrel.
So the Dollar got stronger AND the gold price went up. Oh and oil future prices fell - which usually means less demand for oil- as in economic downturn right?
so in summary
Record Stock Indexes are Awesome!
The Taper is Awesome!
Not Tapering is Awesome!
Making money is awesome!
Loosing money is awesome!
Dollar is stronger, that's awesome!
Gold is up that's awesome!
Buy Stocks, they're awesome!
Winning is Awesome!
Loosing is Awesome!
Its a topsy-turvy world, but
everything is awesome!
