http://www.profitableinvestingtips.com/bond-investing/fed-stimulus-program-continues
Fed Stimulus Program Continues
Watching the Fundamentals
It appears that the Federal Reserve is doing when we continually advise investors to do, fundamental analysis. Putting political concerns aside it appears that the Fed is going to continue its program of pumping money into the bond market until unemployment improves more and the economy moves further out of recession. On a fundamental analysis note, investors owning dividend stocks will likely see the value of their investments rise as bond yields fall and bond values rise. The current front runner to replace Mr. Bernanke at the Fed is Janet Yellen, the Fed vice chairman. Ms. Yellen was instrumental in developing the stimulus policy of quantitative easing. Many experts believe that she will likely follow the conservative course of Mr. Bernanke in not starting too soon or going too fast. As the Fed stimulus program continues traders will wisely watch the economic fundamentals for clues as to when the pullback will occur. Those who follow market sentiment instead will likely be caught off guard as were many who found themselves in short positions and lost money when the Fed acted rationally.
