SlideShare a Scribd company logo
1 of 34
When Yellen Speaks Stocks Fall
By www.ProfitableInvestingTips.com
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Janet Yellen, Chairperson of the U.S.
Federal Reserve has spoken and U.S.
stocks are lower.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Speaking at the yearly Jackson Hole
economic symposium sponsored by
the Kansas City Federal Reserve
Bank, Yellen said that the case for a
rate increase has gotten stronger and
then stocks headed down.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com
Before We Continue…
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
The Wall Street Journal comments on
Yellen’s remarks about interest rates.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
The remarks, which had been
anxiously awaited all week, sparked
an initial reaction to sell stocks that
quickly reversed itself.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Later in the session, stocks again fell,
as investors’ expectations for a rate
rise later this year climbed.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Treasury yields and the dollar also
fluctuated before rising.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Loose U.S. monetary policy has been
a driving force in financial markets,
keeping the dollar soft and supporting
stocks and bonds.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Will higher rates kill the current stock
market rally?
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Despite the apparent fear and
trepidation of the market, the Fed is
likely to raise rates by another tenth or
two tenths of a percent.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
A little historic perspective on interest
rates is in order.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Effective Fed Funds Rate
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
It has been since before the 2008
market crash that the effective
Federal Funds Rate was been
anywhere but near zero.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
However, the Federal Funds Rate has
been as high as 19.4% in July of
1981.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Courtesy of the Federal Reserve
Bank of St. Louis here is a chart
showing the Effective Federal Funds
Rate going back to 1955.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
The federal funds rate is the interest
rate at which depository institutions
trade federal funds (balances held at
Federal Reserve Banks) with each
other overnight.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
The effective federal funds rate is
essentially determined by the market
but is influenced by the Federal
Reserve through open market
operations to reach the federal funds
rate target.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
The Federal Open Market Committee
meets eight times a year and
determines a federal funds target
rates which it aims for by buying and
selling government bonds.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
As the graph shows, the historic
oddity is the fact that rates have been
near zero for eight years!
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Although high interest rates can hurt
the economy we are usually talking
about the rates seen in the 1970s.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
The economy was doing fine in the
late 1990s even though the Federal
Funds rate was in the 5% range.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Winners and Losers, What
and When to Buy
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Utility stocks will take a hit on the
threat of an interest rate rise as noted
by Investor Place.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
There’s no arguing that utility stocks
have knocked it out of the park this
year.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Year to date, the Dow Jones Utility
Average (DJU) is up better than 18%.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Utility stocks are always attractive to
income oriented investors because of
their dividend yields. But is now the
time to buy?
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Probably not. In fact, I recently
recommend taking profits in utility
bellwether Southern Company (SO).
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
But it looks like investors will get an
opportunity relatively soon to pick up
some high quality names in this
dependable, dividend paying sector.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
And there likely will be bargains to be
had for those looking for secure
retirement investments after these
dividend stocks over-correct.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Dividend stocks are normally
considered an alternative to bonds but
now days when interest rates are
nearly zero dividend stocks are a
better bet.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
Smart investors will wait for a slight
correction and then add to their buy
and hold portfolio.
http://profitableinvestingtips.com/investing-tips/when-yellen-speaks-stocks-fall
If rates go too high that could be
another issue but look at the Federal
Funds Rate graph for a little
perspective.

More Related Content

More from InvestingTips

How CFTC Rules Protected a Crypto Business
How CFTC Rules Protected a Crypto BusinessHow CFTC Rules Protected a Crypto Business
How CFTC Rules Protected a Crypto BusinessInvestingTips
 
Blockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto WinterBlockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto WinterInvestingTips
 
Economic and Investment Risks for 2024
Economic and Investment Risks for 2024Economic and Investment Risks for 2024
Economic and Investment Risks for 2024InvestingTips
 
Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?InvestingTips
 
Bitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term InvestmentBitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term InvestmentInvestingTips
 
Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?InvestingTips
 
Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?InvestingTips
 
Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?InvestingTips
 
Obligations of a Crypto Business
Obligations of a Crypto BusinessObligations of a Crypto Business
Obligations of a Crypto BusinessInvestingTips
 
Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?InvestingTips
 
Are Smart Contracts Legal?
Are Smart Contracts Legal?Are Smart Contracts Legal?
Are Smart Contracts Legal?InvestingTips
 
Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?InvestingTips
 
Apple as a Model for Crypto’s Future
Apple as a Model for Crypto’s FutureApple as a Model for Crypto’s Future
Apple as a Model for Crypto’s FutureInvestingTips
 
Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?InvestingTips
 
Who Gets to Vote in Crypto?
Who Gets to Vote in Crypto?Who Gets to Vote in Crypto?
Who Gets to Vote in Crypto?InvestingTips
 
Binance Nixes Russia
Binance Nixes RussiaBinance Nixes Russia
Binance Nixes RussiaInvestingTips
 
Volume Indicators for Trading Bitcoin
Volume Indicators for Trading BitcoinVolume Indicators for Trading Bitcoin
Volume Indicators for Trading BitcoinInvestingTips
 
Blockchain Liquidity Risk
Blockchain Liquidity RiskBlockchain Liquidity Risk
Blockchain Liquidity RiskInvestingTips
 
Is Decentralization Always Important?
Is Decentralization Always Important?Is Decentralization Always Important?
Is Decentralization Always Important?InvestingTips
 

More from InvestingTips (20)

How CFTC Rules Protected a Crypto Business
How CFTC Rules Protected a Crypto BusinessHow CFTC Rules Protected a Crypto Business
How CFTC Rules Protected a Crypto Business
 
Blockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto WinterBlockchain Tech in the Wake of Crypto Winter
Blockchain Tech in the Wake of Crypto Winter
 
Economic and Investment Risks for 2024
Economic and Investment Risks for 2024Economic and Investment Risks for 2024
Economic and Investment Risks for 2024
 
Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?Can Stablecoins Be Self-regulating?
Can Stablecoins Be Self-regulating?
 
Bitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term InvestmentBitcoin Viability As a Long Term Investment
Bitcoin Viability As a Long Term Investment
 
Bitcoin Versus NFTs
Bitcoin Versus NFTsBitcoin Versus NFTs
Bitcoin Versus NFTs
 
Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?Would a Digital Dollar Hurt Banks?
Would a Digital Dollar Hurt Banks?
 
Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?Will 2024 Be a Good Year for Crypto?
Will 2024 Be a Good Year for Crypto?
 
Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?Should You Diversify Your Crypto Investments?
Should You Diversify Your Crypto Investments?
 
Obligations of a Crypto Business
Obligations of a Crypto BusinessObligations of a Crypto Business
Obligations of a Crypto Business
 
Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?Does Crypto Finance Terrorism?
Does Crypto Finance Terrorism?
 
Are Smart Contracts Legal?
Are Smart Contracts Legal?Are Smart Contracts Legal?
Are Smart Contracts Legal?
 
Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?Can the Law Fix Crypto’s Problems?
Can the Law Fix Crypto’s Problems?
 
Apple as a Model for Crypto’s Future
Apple as a Model for Crypto’s FutureApple as a Model for Crypto’s Future
Apple as a Model for Crypto’s Future
 
Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?Are Crypto Infrastructure Investments Safe Bets?
Are Crypto Infrastructure Investments Safe Bets?
 
Who Gets to Vote in Crypto?
Who Gets to Vote in Crypto?Who Gets to Vote in Crypto?
Who Gets to Vote in Crypto?
 
Binance Nixes Russia
Binance Nixes RussiaBinance Nixes Russia
Binance Nixes Russia
 
Volume Indicators for Trading Bitcoin
Volume Indicators for Trading BitcoinVolume Indicators for Trading Bitcoin
Volume Indicators for Trading Bitcoin
 
Blockchain Liquidity Risk
Blockchain Liquidity RiskBlockchain Liquidity Risk
Blockchain Liquidity Risk
 
Is Decentralization Always Important?
Is Decentralization Always Important?Is Decentralization Always Important?
Is Decentralization Always Important?
 

Recently uploaded

19052024_First India Newspaper Jaipur.pdf
19052024_First India Newspaper Jaipur.pdf19052024_First India Newspaper Jaipur.pdf
19052024_First India Newspaper Jaipur.pdfFIRST INDIA
 
Minnesota Timberwolves Bring Ya Ass T Shirt
Minnesota Timberwolves Bring Ya Ass T ShirtMinnesota Timberwolves Bring Ya Ass T Shirt
Minnesota Timberwolves Bring Ya Ass T Shirtniherranjansingha
 
May 2024 - Crypto Market Report_FINAL.pdf
May 2024 - Crypto Market Report_FINAL.pdfMay 2024 - Crypto Market Report_FINAL.pdf
May 2024 - Crypto Market Report_FINAL.pdfmanisha194592
 
Meta_AI_ads_investigation.pdfldoljjwejolejolol
Meta_AI_ads_investigation.pdfldoljjwejolejololMeta_AI_ads_investigation.pdfldoljjwejolejolol
Meta_AI_ads_investigation.pdfldoljjwejolejololbhavenpr
 
Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[
Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[
Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[bhavenpr
 
Dominican American Coalition PAC Executive Summary
Dominican American Coalition PAC Executive SummaryDominican American Coalition PAC Executive Summary
Dominican American Coalition PAC Executive SummaryRDE GROUP CORP
 
World Politics as Black & White Iran and Israel or how people fall victims of...
World Politics as Black & White Iran and Israel or how people fall victims of...World Politics as Black & White Iran and Israel or how people fall victims of...
World Politics as Black & White Iran and Israel or how people fall victims of...Muhammad Shamsaddin Megalommatis
 
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...alpha012343210
 
Encore portal Project PPt on live portal
Encore portal Project PPt on live portalEncore portal Project PPt on live portal
Encore portal Project PPt on live portalEshantRawat2
 
Have A Complimentary Cheat Sheet, On Us!!!
Have A Complimentary Cheat Sheet, On Us!!!Have A Complimentary Cheat Sheet, On Us!!!
Have A Complimentary Cheat Sheet, On Us!!!Abdul-Hakim Shabazz
 
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...Faga1939
 
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatóriosR$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatóriosMaurílio Júnior
 
israeil_bnetaniahou_panel_report_eng.pdf
israeil_bnetaniahou_panel_report_eng.pdfisraeil_bnetaniahou_panel_report_eng.pdf
israeil_bnetaniahou_panel_report_eng.pdfssuser5750e1
 
21052024_First India Newspaper Jaipur.pdf
21052024_First India Newspaper Jaipur.pdf21052024_First India Newspaper Jaipur.pdf
21052024_First India Newspaper Jaipur.pdfFIRST INDIA
 
Embed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;j
Embed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;jEmbed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;j
Embed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;jbhavenpr
 
Positive Effects Of Social Media On Mental Health
Positive Effects Of Social Media On Mental HealthPositive Effects Of Social Media On Mental Health
Positive Effects Of Social Media On Mental HealthTheUnitedIndian
 
Embed-3-1-1.pdf The ECI direction on April 2, 2024 can be read here:
Embed-3-1-1.pdf  The ECI direction on April 2, 2024 can be read here:Embed-3-1-1.pdf  The ECI direction on April 2, 2024 can be read here:
Embed-3-1-1.pdf The ECI direction on April 2, 2024 can be read here:bhavenpr
 

Recently uploaded (17)

19052024_First India Newspaper Jaipur.pdf
19052024_First India Newspaper Jaipur.pdf19052024_First India Newspaper Jaipur.pdf
19052024_First India Newspaper Jaipur.pdf
 
Minnesota Timberwolves Bring Ya Ass T Shirt
Minnesota Timberwolves Bring Ya Ass T ShirtMinnesota Timberwolves Bring Ya Ass T Shirt
Minnesota Timberwolves Bring Ya Ass T Shirt
 
May 2024 - Crypto Market Report_FINAL.pdf
May 2024 - Crypto Market Report_FINAL.pdfMay 2024 - Crypto Market Report_FINAL.pdf
May 2024 - Crypto Market Report_FINAL.pdf
 
Meta_AI_ads_investigation.pdfldoljjwejolejolol
Meta_AI_ads_investigation.pdfldoljjwejolejololMeta_AI_ads_investigation.pdfldoljjwejolejolol
Meta_AI_ads_investigation.pdfldoljjwejolejolol
 
Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[
Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[
Embed-4-3 (1).pdf cvxx'f['df[p'lf][l][fl][fl][][l[
 
Dominican American Coalition PAC Executive Summary
Dominican American Coalition PAC Executive SummaryDominican American Coalition PAC Executive Summary
Dominican American Coalition PAC Executive Summary
 
World Politics as Black & White Iran and Israel or how people fall victims of...
World Politics as Black & White Iran and Israel or how people fall victims of...World Politics as Black & White Iran and Israel or how people fall victims of...
World Politics as Black & White Iran and Israel or how people fall victims of...
 
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
CaseThe legal victory in the turmeric patent case safeguarded traditional kno...
 
Encore portal Project PPt on live portal
Encore portal Project PPt on live portalEncore portal Project PPt on live portal
Encore portal Project PPt on live portal
 
Have A Complimentary Cheat Sheet, On Us!!!
Have A Complimentary Cheat Sheet, On Us!!!Have A Complimentary Cheat Sheet, On Us!!!
Have A Complimentary Cheat Sheet, On Us!!!
 
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
PEACE BETWEEN ISRAEL AND PALESTINE REQUIRES EXTREMISTS OUT OF POWER AND RESTR...
 
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatóriosR$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
R$ 78 milhões: Estado aprova 593 propostas para acordos diretos de precatórios
 
israeil_bnetaniahou_panel_report_eng.pdf
israeil_bnetaniahou_panel_report_eng.pdfisraeil_bnetaniahou_panel_report_eng.pdf
israeil_bnetaniahou_panel_report_eng.pdf
 
21052024_First India Newspaper Jaipur.pdf
21052024_First India Newspaper Jaipur.pdf21052024_First India Newspaper Jaipur.pdf
21052024_First India Newspaper Jaipur.pdf
 
Embed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;j
Embed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;jEmbed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;j
Embed-4-1-1.pdf vm ;sdkp[kdp[kpdkpodp;p;j
 
Positive Effects Of Social Media On Mental Health
Positive Effects Of Social Media On Mental HealthPositive Effects Of Social Media On Mental Health
Positive Effects Of Social Media On Mental Health
 
Embed-3-1-1.pdf The ECI direction on April 2, 2024 can be read here:
Embed-3-1-1.pdf  The ECI direction on April 2, 2024 can be read here:Embed-3-1-1.pdf  The ECI direction on April 2, 2024 can be read here:
Embed-3-1-1.pdf The ECI direction on April 2, 2024 can be read here:
 

When Yellen Speaks Stocks Fall