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Bernanke- Bond buying could wind down in the next few meetings

Posted on 5/22/13 at 12:25 pm
Posted by Oenophile Brah
The Edge of Sanity
Member since Jan 2013
7570 posts
Posted on 5/22/13 at 12:25 pm
Nothing exactly new here but just wanted to post the update. Restated that they will review and determine whether to "raise or lower the pace of purchasing."

WSJ -Paysite
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 5/22/13 at 1:18 pm to
Is this why the market fell nearly 200 pts!?!? Should I run for the hills and buy 1.9% treasuries now?
Posted by ATL TGR
Houston
Member since Apr 2008
2878 posts
Posted on 5/22/13 at 1:26 pm to
quote:

Should I run for the hills


Buy buy buy
Posted by Interception
Member since Nov 2008
11089 posts
Posted on 5/22/13 at 1:35 pm to
Hmm, I would think this would be good for bonds. Probably more money in the stock market than there should be IMO. There just hasnt been a whole lot of yield to be gained outside the market. Obviously, people are carring more risk in the stock market and I could see investors deleveraging into bonds though if the FED eases on the buying.

This post was edited on 5/22/13 at 1:38 pm
Posted by Cmlsu5618
Destin, FL
Member since Sep 2010
3763 posts
Posted on 5/22/13 at 3:50 pm to
quote:

I would think this would be good for bonds


However this was also coupled with a rise in interest rates. I don't keep a keen eye on rates, but I have noticed some jumps in treasury offerings the past couple of weeks.

I locked in some profits on a few investments, keeping a large majority invested, and I'm holding on for the ride.
Posted by Lsut81
Member since Jun 2005
85280 posts
Posted on 5/22/13 at 4:10 pm to
I saw the market dropped around 130 immediately after those comments...

Indicator of what will happen when they officially stop buying?
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 5/22/13 at 4:19 pm to
my tinfoil hat is ready for the 20% correction i've been hearing about.
Posted by Cmlsu5618
Destin, FL
Member since Sep 2010
3763 posts
Posted on 5/22/13 at 4:36 pm to
quote:

ThaBigFella


The market has trended positive all year, primarily from Fed comments and FOMC actions. I don't think it's a stretch to say a correction could be a result of Fed's decision to taper back the bond purchases.

I don't know about 20% though.
Posted by Lsut81
Member since Jun 2005
85280 posts
Posted on 5/22/13 at 4:36 pm to
quote:

my tinfoil hat is ready for the 20% correction i've been hearing about.


I'm trying to decide whether to make a move with BA

PQ was up over 25% from what I bought in at earlier, but lost a good bit towards the end of the day. I prob should have sold at 25%.
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5858 posts
Posted on 5/22/13 at 7:24 pm to
They aren't tapering purchases until the data obliges them to do so. They are also not doing it in an instantaneous fashion, they will keep rates relatively range bound.

The markets crack me up. I love the 100+ point equity market drop and spike in rates following comments that Bernanke "may raise or lower the pace of purchasing". He literally said nothing, a more optimistic sentiment but that's it.

Awesome.
Posted by ZereauxSum
Lot 23E
Member since Nov 2008
10176 posts
Posted on 5/23/13 at 5:42 am to
quote:

The markets crack me up. I love the 100+ point equity market drop and spike in rates following comments that Bernanke "may raise or lower the pace of purchasing". He literally said nothing, a more optimistic sentiment but that's it.


Yeah I've been trying to figure out what the news is here. An unemployment rate of 6.5% is still a long way out.

I wonder what traders are going to do today.
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
70096 posts
Posted on 5/23/13 at 6:05 am to
Asian Markets took a decent hit. Nikkei down 7.3%. Europe down too. US Stock Futures down over 1%.

Looks like there's gonna be blood in the water, and this hungry shark is preparing to kill something
Posted by Lsut81
Member since Jun 2005
85280 posts
Posted on 5/23/13 at 6:32 am to
quote:

Looks like there's gonna be blood in the water, and this hungry shark is preparing to kill something


Yeah, kind of pissed I didn't unload some late yesterday...

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