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Market recap: Stocks gave up all earlier gains after Bernanke said the U.S. economy is slowing...

Market recap: Stocks gave up all earlier gains after Bernanke said the U.S. economy is slowing and that the Fed would remain accommodative but offered no hint of more stimulus. Financials, which had been rising, reversed course. The dollar added to losses and Treasurys rose to their best prices of the day. Oil edged higher ahead of the OPEC meeting. NYSE gainers led losers seven to six.
Comments (8)
  • montanamark
    , contributor
    Comments (1434) | Send Message
     
    he s still talking recovery. job growth will magically appear in fall and things will get better in the "second half"

     

    why would anyone believe anything he says?
    7 Jun 2011, 04:19 PM Reply Like
  • sam_sawyer
    , contributor
    Comments (137) | Send Message
     
    Montanamark, could you ask the Republicans to ease up on the debt limit measure and stop trying to blackmail the Dems on spending cuts while we are trying to revive the economy?

     

    That might help more than anything the Fed could do.
    7 Jun 2011, 04:34 PM Reply Like
  • kwm3
    , contributor
    Comments (2453) | Send Message
     
    bernanke should not be allowed to speak whilst markets are open:)
    7 Jun 2011, 04:41 PM Reply Like
  • Hitesh Patel
    , contributor
    Comments (314) | Send Message
     
    oohhh the crack pipe is being taken away in 2 weeks and the markets are already itching for another hit. Bernank's options are limited and the bears can smell it hence today's late day sell off on increasing volume. Look for another stealth return of deflation in the near term.
    7 Jun 2011, 05:00 PM Reply Like
  • Michael Parmar
    , contributor
    Comments (224) | Send Message
     
    Reading the speech, it is incredible how people read into it what they want.

     

    Maybe I am doing the same thing, but I note the following:
    1. "lost some momentum" = there is still momentum, just less of it.
    2. "uneven" = govt spending reductions, housing market depressed,other things looking up (private investment) + consumption.
    3. interest rates low for an extended period = current market conditions are going to persist no tightening in the near future. That supports asset prices, real investment.
    4. no evidence of inflation expectations rising in the long run, and spare capacity is significant = inflation moderating, especially since the significant component of recent rises has been gasoline prices, which appear to be moderating.
    this has had an impact on trade balance which will unwind.
    5. growth in other parts of the world is significant which will stimulate demand for US exports
    6. the big question is consumer expenditure which is looking up and as a whole will improve as job growth accelarates

     

    ---- in short, a slow, steady recovery is on the way, and the Fed doesn't see any need to change course.

     

    Instead, the market goes "He's out of bullets! He cant help us!" SELL.....!! Or " Consipiracy, tightening is coming, change is coming..."

     

    Talk about overreaction!

     

    IN SUMMARY: The overwhelming body of evidence suggests we are on course for a slow, modest recovery, given the depths of the recession we have been through and it is going to take time, and Fed policy is consistent with this and supporting this, so there is no need to change course!

     

    But people don't want to hear the simple story, they have to read more into it.
    7 Jun 2011, 05:22 PM Reply Like
  • acehart
    , contributor
    Comments (1813) | Send Message
     
    Michael

     

    Do you believe in the tooth fairy as well.

     

    The country is in deep do do. How in the world do you ever pay back the debt we are in. Hell we can't even pay the interest daily !!!

     

    The dollar is doomed , so buy your real money now...silver and gold. Soon the citizens are going to wake up and realize we live and believe on FIAT money and the life of that is about to be coming to an end.

     

    So get prepared, inflation is on the rise...do you shop?? Fuel is going to hit 5 dollars soon...do you drive??? Yet people believe somehow the debt the world is in is magically gonna disappear. Look what is happening accross the ocean. It is heading this way!!!

     

    ACE
    7 Jun 2011, 08:25 PM Reply Like
  • Michael Parmar
    , contributor
    Comments (224) | Send Message
     
    ACE,

     

    No one is denying we We are in DEEP HOLE.

     

    The point is, we are climbing out if it SLOWLY not going further into the hole.

     

    If you just realised how deep the hole is,, I can't help you
    8 Jun 2011, 03:46 AM Reply Like
  • acehart
    , contributor
    Comments (1813) | Send Message
     
    MP

     

    Personally with your comment you are right, you are no help at all!!

     

    Climbing out of it slowly, i guess you are fooled as well. So you eat?? No rise in he cost of food?? Tell me where the momentum was coming from??? Housing, car sales, employment, inflation,

     

    Pal. you are lost !!!!!

     

    This is America. not the UK....
    8 Jun 2011, 07:02 AM Reply Like
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