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Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing...

Dovish Chicago Fed chief Charles Evans sounds constructive on the economy saying it's performing quite well and that Fed policy should hit "escape velocity" in 2014. Stocks give up their small gains, SPY now flat and the QQQs -0.4%, even with a 1.8% gain from Apple.
Comments (32)
  • This dude should stay out of rocket science and get his economics straight first by fixing it when the economy is not growing
    20 May 2013, 01:33 PM Reply Like
  • ''escape velocity'' in 2014. Which way does he mean, up or down?
    20 May 2013, 01:42 PM Reply Like
  • It means, Escape and sell as near to the top, before everybody tries to do the same.

     

    Escape the market bubble.

     

    Quick!
    21 May 2013, 12:49 AM Reply Like
  • Why on earth would anyone indulge in QE to bolster the stock market, then let it collapse at some later date when financial risk has abated. It seems so pointless...so given that, there is no doubt in my mind that the market will return to "normal" dynamics once QE is withdrawn, and that does not include a collapse per se.

     

    PS, no matter what one may think of Mr Evans, escape velocity describes a situation which is unambiguously good.
    21 May 2013, 12:57 AM Reply Like
  • These FED officials.....all they do is tell people what they "want" to hear, not what they "need" to hear.
    20 May 2013, 01:56 PM Reply Like
  • It means we are years away from a recession...
    20 May 2013, 01:57 PM Reply Like
  • bro
    years away from a recession........where you get your news from, I'd like to know? unless you are a banker and get your performance award no matter what and then your economy is growing
    20 May 2013, 02:34 PM Reply Like
  • "years away"

     

    I heard that in 2007 too. (the last top)
    21 May 2013, 12:48 AM Reply Like
  • The good fed bad fed official back and forth on QE is becoming old.
    20 May 2013, 01:57 PM Reply Like
  • Old or not but they need to play that circus. This is whey Ben has such a lovely beard - he is the main clown in the show.
    20 May 2013, 03:30 PM Reply Like
  • No recession ? Really ,I thought all those economic reports last week were WEAK to say the least. Maybe anemic is a better word.

     

    Everyone's entitled to their opinion though
    20 May 2013, 02:20 PM Reply Like
  • The economics numbers are all cooked.
    20 May 2013, 02:22 PM Reply Like
  • Can't wait to see this NEW GDP calculation as well. Found another way to cook the figures. When will sheeple catch on to this game?
    20 May 2013, 02:26 PM Reply Like
  • "ESCAPE VELOCITY" is code for the FED getting out of town real quick maybe??
    20 May 2013, 02:31 PM Reply Like
  • Ya,

     

    Bernakie is done in Jan 2014 who will be left holding the bag!
    20 May 2013, 03:03 PM Reply Like
  • That is just code for "QE is coming to an end...soon!"
    20 May 2013, 02:58 PM Reply Like
  • Sorry, I am not buying that one bit. They are stuck and they know it !!

     

    QE'S did not do what they were hoping for. Job market is still dead and eventually that is what drives all stock prices. If you can't afford to buy something you don't. Very simple .

     

    Companies are razor thin employment wise so it is going to hit the financials real soon folks!
    20 May 2013, 03:02 PM Reply Like
  • There seems to be a growing number of FOMC members who believe that it is time to start reducing the amount of monthly asset purchases. I'm inclined to agree with them. We need a good market correction right about now.
    20 May 2013, 03:31 PM Reply Like
  • "If you can't afford to buy something you don't. Very simple ."

     

    Well, except for the fact of credit cards. But your point remains.
    20 May 2013, 04:30 PM Reply Like
  • If Obama isnĀ“t Obama, who a heck is running your country?

     

    http://bit.ly/117ckvf
    20 May 2013, 03:03 PM Reply Like
  • It's always "next year" with these Fed rats.
    20 May 2013, 03:35 PM Reply Like
  • http://seekingalpha.co...
    20 May 2013, 03:41 PM Reply Like
  • Good article, but what he did not discuss is the market reaction to the end of QE, which I think will be a bit of a correction. Indicators are beginning to show that the market is overbought. Building up cash as I wait for the correction.
    20 May 2013, 04:08 PM Reply Like
  • Lots of comments from people who sold in May?
    20 May 2013, 05:03 PM Reply Like
  • How do you know?
    21 May 2013, 12:39 AM Reply Like
  • Sidelines$, because the impression they give by their comments is that they are all expecting a market crash or a recession or anything else which does not contain an expectation of a rising stock market.

     

    Note the question mark.
    21 May 2013, 01:01 AM Reply Like
  • Villi

     

    How do you square the "Rising Market" with week manufacturing numbers. Record high unemployment and record low participation rate.

     

    I would be a fool to think that this market is not fueled by the fed.
    21 May 2013, 08:22 AM Reply Like
  • cudashark,

     

    There are plenty of stocks which indeed are not participating in this rally, which may well be explained by the poor macro conditions. On the other hand, there are many who have been driven through the floor which have staged a significant recovery, and many others which are responding to changing conditions in their own little space which have little to do with macro conditions.

     

    The portfolio I outlined in my latest articles has returned 7.7% in the past month or so, is comprised of this type of stock. I can't think why IDT has put on 27% and OGE 1.5% in response to "The Fed".

     

    None of this is to say that I am at a loss as to know what to do next, But a real crash requires above all, a financial crisis and that's not going to happen in the US in the foreseeable future.
    21 May 2013, 04:51 PM Reply Like
  • Among all the Fed officials, this guy is the one I dislike the most, always meaningless.
    20 May 2013, 06:39 PM Reply Like
  • Not even the Fed idiots can pretend the economy (market) is going to do anything but tank as soon as QE stops...let alone gets unwound. Even sex changes won't be good enough disguises for these clowns after the average joe blow realizes the pain we have coming as payback for these past few fantasy years.
    20 May 2013, 08:42 PM Reply Like
  • Will we get a recession if QE stops? Possibly we will. QE is likely to stop because Evans is right about the economy taking off, with higher consumer and business spending leading the way. That would be a good time to expect a correction as the stock market moves contrary to the real economy due to a drop in corporate profits.
    20 May 2013, 11:35 PM Reply Like
  • QE may not have much to do with domestic growth - it may primarily be a tool in the currency game designed to maximize the buying power of the dollar. All G20 nations are printing, but which money buys the most? Maybe PM is a decoy. Maybe I'm a Fool?
    22 May 2013, 02:34 AM Reply Like
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