Stocks continue to fall. Investors not trusting Feds word about rates hike.

[HawktimusPrime]

http://www.wsj.com/articles/european-shares-fizzle-after-rally-1442908754?mod=rss_markets_main

“It’s a very skittish market,” said Wouter Sturkenboom, senior investment strategist at Russell Investments, which has $266 billion under management.


“A few months ago, people saw down moves as an opportunity to start adding. Now, as soon as they see a down move, they sell and sell hard,” he said, adding that Russell has reduced holdings of stocks in some of its multi-asset funds in recent days.

Government bonds climbed as investors sought assets perceived to be safe. The 10-year U.S. Treasury yield fell 0.08 percentage point to 2.123%. Yields fall as prices rise.

 

[aflachawk]

http://www.wsj.com/articles/european-shares-fizzle-after-rally-1442908754?mod=rss_markets_main

“It’s a very skittish market,” said Wouter Sturkenboom, senior investment strategist at Russell Investments, which has $266 billion under management.


“A few months ago, people saw down moves as an opportunity to start adding. Now, as soon as they see a down move, they sell and sell hard,” he said, adding that Russell has reduced holdings of stocks in some of its multi-asset funds in recent days.

Government bonds climbed as investors sought assets perceived to be safe. The 10-year U.S. Treasury yield fell 0.08 percentage point to 2.123%. Yields fall as prices rise.

Thanks Obama

 

[fredjr82]

Thanks Obama

That would have been funny if I wasn't familiar with your posting history.

 

[DrVenkman]

Money is going into treasuries again. the worry is about the economy. hard to see the US economy gaining enough strength to surprise to the upside. Again I feel this is the main message that markets took from Yellen.

For now there is very little worry about a recession in the US. I hope that is the case. Many banks are pulling in on lending as the spreads are just not there. It was reported to day that Wells Fargo is yet another big consumer lender that is raising its hurdle rate for mortgage lending - from 600 to 660.

Kind of a lot of headwinds right now.

 

[markfromj]

I don't understand "continue". Stocks were well up yesterday.

 

[Funky Bunch]

Market movements can almost never be traced to one event. Last week I saw a headline that read something like "stock futures down on jobs report". Then when futures changed direction, they changed it to "stock futures up on jobs report".

 

[cigaretteman]

I don't understand "continue". Stocks were well up yesterday.

Aegon never gets tired of being wrong about this topic.

 

[86Hawkeye]

I have no real issue holding off on a rate hike at this time. I think inflation needs to be a bit higher first.

But to use all the other excuses like China, etc., is just simply ignoring the Fed's legal mandate and causes unnecessary confusion.

All she had to do was say "no rate hike until inflation gets safely above 2%". Period. End of story.

 

[DrVenkman]

I have no real issue holding off on a rate hike at this time. I think inflation needs to be a bit higher first.

But to use all the other excuses like China, etc., is just simply ignoring the Fed's legal mandate and causes unnecessary confusion.

All she had to do was say "no rate hike until inflation gets safely above 2%". Period. End of story.

I'm wondering where this inflation is going to come from?
Energy is lower and looks to stay subdued. Industrial economy is slow. The Internet and ecommerce is hugely deflationary. There is very little going on In housing.