Eagle Eye Opener: Concern about QE Hurts Equities; Weather May Have Led to Drop in January Housing Starts; Asian Markets Retreat

Buzz Kill: Fed Officials Hint at QE Slowdown (Reuters)

U.S. markets dropped more than they had in three months yesterday after the release of the minutes from the Federal Reserve’s latest meeting on Jan. 30 when Fed officials expressed concern that quantitative easing (QE) may decelerate before the target unemployment rate is hit. That voicing of concern was enough to spike market volatility and pummel stock prices. For the day, the DJIA lost .77 percent, the S&P 500 dropped 1.24 percent and the Nasdaq gave back 1.53 percent. We’ll have to see what happens to the markets if the Fed does pull back on the QE reins. .

One Step Back, Two Steps Forward for U.S. Market (YahooFinance)

The Commerce Department announced housing starts in the United States were down 8.5 percent in January, but it indicated the drop could have been weather related. What’s more important in many investors’ minds is that permits for future construction hit a 4.5-year high. Starts for single-family homes returned to highs not seen since July 2008, while new permits approached June 2008 highs. As for sustained growth, Patrick Newport, an economist at HIS Global Insight, said, “The fundamentals are there and the drivers are looking good.” Here’s hoping Patrick’s psychic.

Asian Stocks Dive on China, Fed Remarks (Bloomberg)

Asian stocks swan-dove yesterday after concerns surfaced about the world’s largest economies. One of the biggest hits affected Chinese developer R&F Properties, which lost 2.5 percent. Far Eastern investors reacted even more negatively than their U.S. counterparts did upon hearing the news that the Fed may ease QE before America hits its unemployment rate goal. Specifically, Japan’s Nikkei 225 lost 1.39 percent, Hong Kong’s Hang Seng gave back 1.75 percent and the Shanghai Composite surrendered 2.97 percent.

Exclusive  The Global Guru: The United States' Future: California or Texas?

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Apparently, there is nothing to worry about on Wall Street; stocks will no longer go down, and the lion will now sleep with the lamb. I jest, of course, but if you read the financial press these days, or listen to pumped-up pundits extolling the virtue of equities, you might come away with the idea that all is bliss in stock land.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen publishes 4 different investment newsletter advisories, including the award-winning Forecasts & Strategies, which has beaten the market over the last 15 years.

Product Details

  • Forecasts & Strategies
  • Skousen High Income Alert
  • Fast Money Alert
  • Five Star Trader
About Mark Skousen

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays. Bryan's four newsletter and trading services include:

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Instant Income Trader
About Bryan Perry

Nicholas Vardy

A Stanford and Harvard Law graduate, Nicholas Vardy scours over 40 different global markets every day to uncover new profit opportunities for subscribers. His 3 advisories and trading services include:

Product Details

  • The Alpha Investor Letter
  • Bull Market Alert
  • Alpha Algorithm
About Nicholas Vardy

Doug Fabian

A 30-year Wall Street veteran and famed market timer, Doug Fabian is one the nation's foremost experts on ETFs (Exchange Traded Funds). His two ETF-focused advisories include:

Product Details

  • Successful ETF Investing
  • ETF Trader's Edge
About Doug Fabian

Bob Carlson

In Bob's monthly newsletter, Retirement Watch, he provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

ABOUT BOB CARLSON

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research. Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

Product Details

ABOUT DIVIDENDINVESTOR.COM