Taper? Wait for it, wait for it... and wait for it we will, as
the Fed surprises the entire financial universe by holding off on
reducing the pace of Treasury and mortgage-backed security
purchases. The Fed also pegged the 2016 Fed funds rate at 2.0%,
which certainly signals long-term accommodation. These non-moves
should support bond prices as well as the rates people pay for
mortgages, not to mention the
(INDEXNASDAQ:.IXIC), European markets, and emerging markets.
There is no question that the Fed is keeping a wary eye on the
upcoming debt ceiling, continuing resolution, sequestration, and
government shutdown debates that are about to dominate the
inactivity activity in Washington, DC. Like it or not, the Federal
Reserve is still the hardest working body in the government
The message is clear: The Federal Reserve intends to stay very
supportive of big-ticket purchases like houses, cars, and
furniture. It also remains focused on improving job growth and
inflation growth. When will we get enough of each to start the
tapering that most expected today? I don't know, and I imagine no
one else does, either... but if you do, please post it in the
Wall's comment section below.
Click on the image below for an interactive version of
this week's Wall of Worry
, or scroll down for the text-only version and an explanation of
how the Wall works.
A very early start to the 2013 vacation break might be nice for
Congress, but it sure would be an economy-size lump of coal for the
rest of us.
"More, more, more. How do you like it? How do you
More people dropped out of the workforce. Whew!
"Wishin' and hopin' and thinkin' and prayin',
plannin' and dreamin'"
that it continues to stay in the +2% range.
Money coming into mutual funds and out of ETFs, therefore market
sentiment confusion staying put.
This entry is coming off the Wall soon so if anyone has any reason
why this worry should be kept on the WoW, let them speak now or
forever hold their fretting.
If it ain't getting worse, it's getting better... I hope.
Actually not so bad, considering an exchange or two shuts down once
Lloyd: What do you think the market impact from Fed tapering will
HAL: Anything short of mayhem will be a disappointment.
Lloyd: That's it. You're officially off my holiday gift list.
HAL: What's a holiday?
Considering opening up their markets to REITs, margin trading, and
shorting selling. Coming close to officially declaring, "The
water's fine, boys, come on in!"
Sure would be a buzzkill if we got a oil price spike right about
Gets the 2020 Olympics. Does that mean it has to keep its economy
levitated for the next six years?
The US needs yet another stopgap measure so it can pay its bills.
Note: This is different from the debt ceiling issue, which allows
it to continue to pretend that it will pay its tab in full one day.
As we go to print, the 10-year yield is dropping steadily and all
is calm. Best advice: Take a picture.
Pouring more fuel on the monetary fire.
Demand for them in the US seemingly still on August break.
The Battle Royale With Cheese...which is worse, their political
situation or their economic situation?
Sheesh, if you're gonna let the threat of a new war in the Middle
East derail your spending bravado...
Sending a big "Nah-nah nah nah-nah" to Italy as their 10-year bond
yields drop below those of their EU cousin to the east.
Syria comes off the table, and then oil comes off the wall.
If the non-stop shopping sprees have ended in the US, what are
people doing with their weekends, weeknights, and weekdays?
Red lines being drawn by the executive and legislative branches of
the US government. Once we get the Supreme Court to chime in, we
will have a trifecta.
I think the US just hit a giant pause button.
Leaders from the EMs seem more concerned about Fed tapering than
leaders in developed markets. And they should be.
The question isn't who is going to win but rather what happens
after she does.
Still Yellen vs. all comers.
What Is Lloyd's Wall of Worry?
Welcome to my at-a-glance guide to the issues facing investors this
week -- a unique tool for traders and money managers.
Typically the term "wall of worry" refers to the entire body of
concerns influencing stock market action. When the wall is high,
meaning the market is nervous, stocks tend to get cheaper.
This wall of worry is even more specific. Every week I list the
exact concerns in the marketplace and use the list to help me make
buying and selling decisions. As I like to say, "Buy fear, sell
In other words, once the the wall rises above 15 blocks, start
looking for deals. If the worry count sinks below 10, consider
selling; prices have likely peaked.