Seeking Alpha

Fed boosts speculation about tapering by year-end, stocks slide

  • The Fed didn’t say it could start tapering at its December meeting but it didn't say it wouldn't, and that was enough for profit takers to swoop in and send stocks lower, halting a four-day record run.
  • Virtually every line of today's FOMC statement was unchanged from September save for two minor changes, which despite the late drop in stocks more or less puts today’s announcement in line with expectations.
  • All 10 sectors settled in the red, but their losses were limited to less than 0.8%; the tech-heavy Nasdaq lagged the other indexes as biotechs are on track to end the month with a 1% loss.
  • Treasurys ended lower, with the 10-year yield up three bps at 2.53%; gold prices fell and the dollar strengthened against major currencies.
Comments (17)
  • al roman
    , contributor
    Comments (6888) | Send Message
     
    Four and more digit close,this is not how the day began.
    30 Oct 2013, 05:21 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1101) | Send Message
     
    What hawks?
    30 Oct 2013, 05:39 PM Reply Like
  • losbronces
    , contributor
    Comments (706) | Send Message
     
    Must be stealth hawks, the most dangerous kind...
    30 Oct 2013, 08:06 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4013) | Send Message
     
    What about the 1T in student loans that need to be monetized?
    30 Oct 2013, 05:49 PM Reply Like
  • tripleblack
    , contributor
    Comments (13542) | Send Message
     
    Yeah, what about them? And how come I don't have one?

     

    I'm all the time paying to have other people's debts "monetized". Its getting old.
    30 Oct 2013, 06:22 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4091) | Send Message
     
    Hawkish??
    30 Oct 2013, 06:36 PM Reply Like
  • markrpat
    , contributor
    Comments (211) | Send Message
     
    I didn't see or hear anything "hawkish" about the release today. Pathetic and misleading headline. Sorry. Let's try to keep it real.
    30 Oct 2013, 08:10 PM Reply Like
  • mobyss
    , contributor
    Comments (2044) | Send Message
     
    Not increasing QE today is seen as hawkish.
    30 Oct 2013, 08:18 PM Reply Like
  • markrpat
    , contributor
    Comments (211) | Send Message
     
    No.. it's not. If you think for a minute that BB was going to announce anything earth shaking into the retail season, then you're sadly mistaken. Expect the same in November. Buy a clue.
    30 Oct 2013, 08:23 PM Reply Like
  • al roman
    , contributor
    Comments (6888) | Send Message
     
    The Hawks that leave the pockets hanging inside out,empty !
    30 Oct 2013, 08:45 PM Reply Like
  • Robert Duval
    , contributor
    Comments (4519) | Send Message
     
    http://seekingalpha.co...

     

    We are set up to crack hard, tommorrow / and or Friday. Position accordingly.
    30 Oct 2013, 09:18 PM Reply Like
  • snoopy44
    , contributor
    Comments (857) | Send Message
     
    The Fed is nowhere near ready to taper. This economy is still very, very shaky right now. The employment trends are very weak. Consumer confidence levels are dropping. Inflation is nowhere to be seen. Why in the world would there be a need to taper?
    30 Oct 2013, 09:56 PM Reply Like
  • RS055
    , contributor
    Comments (2861) | Send Message
     
    Just like an alcoholic - the markets now need the 85 billion/mo just to feel "normal". So the bartender saying he's just going to supply the same quantity of liquor is kinda disappointing.
    31 Oct 2013, 01:11 AM Reply Like
  • RS055
    , contributor
    Comments (2861) | Send Message
     
    For the young-uns out there - let me tell you that at the 1999 dot-com peak - folks worried incessantly about this or that momo stock being up or down 1%. Nobody could even imagine the nasdaq going down 90%. It was not part of the daily debate - it was inconceivable.
    31 Oct 2013, 01:15 AM Reply Like
  • RS055
    , contributor
    Comments (2861) | Send Message
     
    But yes - in 2001-2002, 2008 markets went down - a lot - enough to wipe folks out. And ... the world did not end - we just saw a lot of people get poor. There was no revolution, no rapture , nope nothing like that - the universe did not acknowledge all the people that became poor with any great pyrotechnics. Thats the way I see it happen this time too.
    31 Oct 2013, 01:19 AM Reply Like
  • RS055
    , contributor
    Comments (2861) | Send Message
     
    In those prior crashes, the Fed had a lot of ammunition. Fed Funds were at 4-5%. The Fed could boldly cut rates. Then in 2009 the Fed boldly embarked on this QE thing. What will they do this time?
    31 Oct 2013, 01:24 AM Reply Like
  • RS055
    , contributor
    Comments (2861) | Send Message
     
    IMHO - the only thing left for the Fed to do is to seriously devalue the Dollar. QE will not do the trick any more - its played out. There are no interest rates to cut. No no - the only path will be a massive Dollar devaluation.
    31 Oct 2013, 01:29 AM Reply Like
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