Waiting on the Fed

Now that the election is finally past us, we can turn our attention to the Fed and the announcement that’s due at 2:15 pm. How big will QE2 be?

I can guarantee you that some commentators will see it as far too big while others will see it as far too small. I’m starting to expect that the Fed may use a two-part strategy to boost the “headline effect.” For example, they may announce $500 billion in Treasury purchases followed by $300 billion in purchases from the payments from their mortgage holdings. Something like that. But really, I just don’t know, though I suspect that the market will be disappointed.

The indexes are just about flat today. The election seems to have gone according to most expectations, so the market isn’t digesting any major surprises. There also isn’t much going on with the Buy List today. Most of our stocks are near flat. Stryker (SYK) is up about 2.9%, making it our best mover on the day. Currently, the Buy List is up 0.08% today compared with a loss of 0.35% for the S&P 500.

Stay tuned for the Fed!

Posted by on November 3rd, 2010 at 11:30 am


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