Archive for July 12th, 2012
Thursday, July 12th, 2012
“Overall, the minutes showed that further [quantitative easing] is not yet a consensus view among FOMC members and would only likely be triggered if the economic recovery were to lose momentum,” said Jim Reid, strategist at Deutsche Bank in London. “So last week’s slightly [disappointing U.S.] payrolls number isn’t probably enough evidence yet.”
Ironically, the market is more likely to gain ground in the near term if economic data deteriorates, he said, in a note, because that would be more likely to prompt more action.
I wouldn’t be surprised by this either. What happened to fair value markets? They went away five years ago and have yet to return. How can anyone apply a long term strategy in this mess? I wish the FED would take a step back and let the markets value correctly. Constant interventionism is doing more damage than good.