Market Crumbles Under QE Concerns

Overall

  • The S&P 500 dropped 2.50% after fear of QE tapering tipped the markets
    • Stimulus could be tapered by end of year if the economy continues to improve
    • 10-year Treasury rose 4.67% to 2.42%, gold fell 6.84%
    • This is what the Whale predicted in his earlier post “Great Rotation” to Nowhere

Positives

  • PMI Flash Index rose more than expected to 52.2, indicating an expansion
    • Yet the indicators has been trending downwards
  • Existing Home Sales rose 4.2% to 5.18M SAAR, sales are up 12.9% Y/Y
  • Philly Fed Survey shows some  improvement up to 12.5, from -1.0

Negatives

  • Jobless Claims rose more than expected to 354K, suddenly showing upward movement
  • China PMI showed slowing and credit issues are emerging again

 

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About Jon Brooks

Jon graduated Summa Cum Laude from Virginia Tech with a B.S. in Finance and a minor in International Business. During his undergraduate career, Jon interned with Goldman Sachs and PricewaterhouseCoopers. He was also a Senior Analyst in Bond And Securities Investing by Students (BASIS), the Vice President of the Society of Individual Investors, and a member of Beta Gamma Sigma. Jon is an analyst at a large accounting firm. Jon passed the CFA level 1 exam in January and is a CFA level 2 candidate.

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