The Federal Reserve Open Market Committee or FOMC came down from its financial Mt. Olympus to deliver a decision on monetary policy. The headline decision was to decrease its monthly purchases of bonds by $10 billion to $75 billion. That is what was referred to as tapering. The immediate Pavlovian reaction was to sell stocks. That however was a major mistake because the FOMC had a second message to the market. That message was that short term rates were going to be maintained at a range of 0 - ¼% for the foreseeable future. The second part of the FOMC statement was met with intensive buying, first reversing the aforementioned selling and then rallying to all-time highs for the Dow Jones Industrials (DJIA) and S&P 500 (SPX).
I would note that the impact of the FOMC announcement was a rush to buy dividend oriented stocks which have been forsaken ever since the tapering rumors began to circulate. Now that tapering mania is over, expect those stocks to begin to perform better, which should help the High Dividend Low Volatility portfolio that LakeView Asset Management runs on Covestor.
Source: The Street
Related Articles:
- 5 Quality Dividend Stocks To Take The Emotion Out Of Investing
- 7 Select High-Yield S&P 500 Dividend Stocks
- A Winning Investment Strategy
- 8 Industrial Strength Stocks With Dividend Growth
- 6 Dividend Stocks To Beat The Wall Street Giants
Fed's Low-Rate Pledge May Help Dividend Stocks
Posted by D4L | Wednesday, January 08, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.