Bernanke Rips a Guitar Solo and the Markets Eat It Up (Reuters)
Chairman Ben Bernanke’s status as the Fed’s resident “rock star” is still as strong as ever. All it took from him yesterday was a couple of choice words in front of the House Financial Services Committee — reflecting his unwavering belief in the government’s stimulus policies — and the markets nearly turned cartwheels. Okay, so the gymnastics part is a little exaggerated, but certainly the excitement about his pro-stimulus comments were not. Upon hearing Bernanke’s remarks, the markets responded with their strongest gains since November.
The Dow’s Five-Year Recovery Plan (CNBC)
The Dow Jones Industrial Average has returned to within shouting distance of its all-time highs, closing at 14,075 on Wednesday Of course, it wouldn’t be investing in the United States if there wasn’t a tremendous “blow” on the horizon that could bring everything tumbling down. Should that gust not materialize, and the Dow remain free to run its course, many feel it’ll push through to new highs this afternoon — especially with volatility making more and more frequent appearances.The next big question will be whether or not the sequestration gets in the way of the market’s upward ride?
British 20-Somethings Receive Rude Awakening (YahooFinance)
Thanks to an appetite for savings that appears to be insatiable, Chinese workers are on a record savings pace. Halfway around the world, British 20-somethings are taking the news with a lump of terror in their throats. Why? Because, this excess savings is going to keep bond yields and financial interest rates unnaturally high — meaning retirement funds won’t be quite as flush with value as they have been in the past. That reality brings us to the worst part of this story, by far. It seems 20-30 year-old Brits may have to work until their mid 70s before they can afford to retire. We hope they eat the right foods and exercise to stay healthy and productive in their later years.