Well, I gotta say, we’re starting November of on the right foot. For the week, I added a healthy 2.9 percent, and today I logged a 9-point gain thanks to a last-minute rally — an appropriate finish to a solid week.
I think Ben “The $600 Billion-Dollar Man” Bernanke and the Federal Reserve deserve a lot of credit for the performance I put in — and I’m not just being modest. On Wednesday the Fed rolled out plans to incrementally infuse the financial system with $600 billion in purchases of long-dated Treasuries to lower interest rates and stimulate the economy. It’s an inflationary move, and I love inflation! After all, inflation is an increase in asset prices, and the stocks that make me up — they’re assets!
The Fed isn’t stopping at mere unprecedented monetary policy, though. Word is the central bank will start easing up on big banks and start allowing them to pay dividends to shareholders. The financial sector likes that news — Bank of America and JPMorgan Chase were up 1.9 percent and 2.9 percent, respectively.
Add in an October jobs report that wasn’t cataclysmic — the unemployment rate is holding steady at 9.6 percent, and we added jobs — and I’m feeling alright.
Good week guys,
The Dow Jones Industrial Average