Tuesday, December 13, 2011

FOMC Statement

Looks like the markets weren't pleased with the Federal Open Market Committee (FOMC) Statement today. According to an excerpt from the committee statement -
Information received since the Federal Open Market Committee met in November suggests that the economy has been expanding moderately, notwithstanding some apparent slowing in global growth. While indicators point to some improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but business fixed investment appears to be increasing less rapidly and the housing sector remains depressed. Inflation has moderated since earlier in the year, and longer-term inflation expectations have remained stable.
But, the by the looks of how the markets reacted today, investors aren't believing whatever the Fed has to say, or perhaps they thought this is what the FOMC actually meant to say -

Regardless, this isn't Kansas. I'm still holding long and not as fearful as most investors.

I'm expecting the stock market to turn around soon at this stage. I have a few select stocks on my radar screen that I didn't capitalize on during the previous downturn, and will take a position in one or more of them if their prices continue to drop further.

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