Dear Diary,
Thank heavens for the Federal Reserve! “Seriously, Fed, never change,” is what I was thinking this morning before the central bank announced its latest monetary policy decision. And it must have heard me, because everything is the same as before! The Fed plans to keep creating money out of nowhere to buy long-term Treasury securities in an effort to keep down long-term interest rates. And it plans to keep short-term interest rates near zero, assuring easy money for big financial institutions! Hopefully that will help with unemployment or something, but mainly I’m thinking it’ll allow some people to buy more stocks, which is what I’m all about.
Following that news, I hit my best intraday levels since September 2008, which you may remember as “the brief period of time right before everything went completely to bits.” That rally couldn’t last, and I ended the day up 48 points — to log my highest close since September 2008. Not bad, right?
It’s not all gravy on the quantitative easing front. For some reason, yields on bonds have been rising lately. That’s not what we expected, since the Fed’s actions are supposed to lower interest rates. The meaning of this is not yet certain, but I’m on my toes about it.
We’ll see what happens!
The Dow Jones (DJIA) Industrial Average
