Thursday, April 5, 2012

Short but not easy...

Short week with Easter Holidays and Qingming holiday in China.  However markets are acting tricky.  Minutes from the last Fed meeting was released on Tuesday and it was sobering (literally).  Now increasing concerns that all the cheap money the Fed has been plowing into the economy may be coming to an end.   Hard to be the Fed right now - they're kind of stuck between a rock and a hard place.   Many are arguing the FED must stay loose as the US economy is still weak.  Conversely the other argument being that the US economy is sufficiently revived and the Fed needs to step back.


Just like it sucks when a party runs out of libations, it's always tough for markets when the Fed starts acting more prudent.  Guess it's wait and see.  Accordingly, I would recommend you do a brush up on US banks.  If we do see interest rates in the US start to rise, you'll want to know your banks.          

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