Fed Keeps ’em Guessing as to When Tapering will Start; Fed’s Non-Event Deflates Emerging Market Currencies and Shares; Developed Nations Rise on Good News out of China and Europe

Eagle Eye Opener

Fed Keeps ’em Guessing as to When Tapering will Start (Bloomberg)

Although the minutes from the Federal Reserve’s recent meeting indicate broad support for reducing the Fed’s $85 billion a month stimulus program this year, no specific start date has been determined. The caveat here is that the tapering will begin as long as the U.S. economy continues to strengthen. However, that time is not yet here, as reflected in the following quote from the meetings minutes: “Almost all committee members agreed that a change in the purchase program was not yet.” So, what’s an investor to do? Imitate the Fed and put a decision off until the Federal Open Market Committee’s (FOMC) next meetings on Sept. 17-18.

Fed’s Non-Event Deflates Emerging Market Currencies and Shares (Reuters)

Emerging market currencies and shares both fell today on the news, or lack thereof, regarding a specific start date for reduction of the Fed’s stimulus program. India and Turkey were two of the countries hit the hardest, with both of their currencies hitting an all-time low against the dollar. Currencies in Indonesia, Malaysia and Thailand fared a little better, but all three of those countries saw their currencies hit multi-year lows. If you’re an investor in those currencies or markets, and looking for another place to your park your investable funds, think domestically. The yield on the U.S. Treasury’s 10-year note hit a two-year high of 2.9 percent while the dollar rose 0.25 percent against a basket of major global currencies.

Developed Nations Rise on Good News out of China and Europe (AP)

Exclusive  Smithfield Profit Plunges on Drop in Exports; Clearwire Gives Dish’s Ergen a Nod in Billionaires' Duel; U.S. Wholesale Prices Rise in May

Investors did receive some good news yesterday, as well: “solid economic figures” out of China and Europe. In HSBC’s most recent purchasing manager’s index (PMI) survey, China’s 50.1 score in August indicates that the country is back on track for economic growth, and that number is especially optimistic following a July score of 47.7. The PMI for Europe’s 17-country Eurozone came in at 51.7, up from 50.4 in July, indicating continued economic expansion as the region continues to break out of its recession. And the United States looks as if it will build on China and Europe’s momentum today, with both Dow and S&P 500 futures slightly up at the time of this writing.

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

previous article

The minutes of the Federal Open Market Committee’s recent meeting were released on Wednesday, revealing that Federal Reserve officials are willing to taper their bond-buying program later this year.


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details


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.

Product Details


Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details


Bob Carlson

Bob Carlson 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


Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details



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.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.