AP News

News Summary: Should you buy after Fed stimulus?

FED UP: One goal of the Federal Reserve's stimulus is to make you so frustrated with the puny yields from conservative assets, like Treasurys, you'll buy stocks and other risky assets, driving up prices. That should make you richer and willing to spend more money, helping the economy.

HISTORY SAYS BUY: Since the Fed's first stimulus in November 2008, the S&P 500 has gained 85 percent. Risky high-yield bonds have gained 68 percent.

WARNING SIGNS: But the world economy is slowing, and Wall Street analysts expect earnings to fall this quarter, the first drop in years. And high-yield is no longer worthy the name. It's paying just 6 percent in interest, a record low.

Burger King's Young Buns

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

blog comments powered by Disqus