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Tag Archives: Ben Bernanke

Investing in a Post-QE3 Economy

Federal Reserve Chairman Ben Bernanke

Ben Bernanke, the chairman of the Federal Reserve, was in Jackson Hole, Wyoming on Friday discussing the intentions of the Fed to help the faltering US economy. Still undecided about another round of quantitative easing, Bernanke did not announce bond buying by the Fed to stimulate the economy, nor did he rule it out.

Labeled QE3 as it will be the third round of easing over the past few years, the idea of easing is to boost the economy by pumping it up with cash and keeping interest rates low so that more people will be willing to take out loans to buy homes and cars.

Although it is not clear if the economy will react the same way to QE3 as it did to QE1 and QE2, here are some ideas in how investors should react to the implementation of QE3 if it should happen.

Precious metals and commodities are usually a good bet when the economy is stimulated with cash or when inflation looms in the picture.

"QE3 will likely have a play for everyone," the analysts wrote. "Odds-followers should buy silver. Contrarians should look hard at owning detested coal stocks. And for those who want to participate in a QE3 rally, but with less volatility, buy gold."

The Fed and Economic Recovery

The Federal Reserve’s dejected outlook for additional economic recovery in the U.S. this year is reason for concern, but officials are nonetheless pooling their efforts in hopes of boosting job growth. Still, many believe the central bank has already exhausted its chances of stimulating the economy any further this year. On Wednesday, the Fed stated… Continue Reading

Quote of the Day: Bernanke Sends Mixed Message About Unemployment

Federal Reserve Chairman Ben Bernanke said on Monday that the Feds’ stimulation of the economy has indeed helped reduce the amount of unemployed in recent months, but warned that because of the size and duration of the problem there could result lasting damage to the US economy as a whole. “Recent improvements are encouraging,” he… Continue Reading

Quote of the Day: New York Fed President William Dudley on Today’s Economy

The Federal Reserve is still debating whether or not to embark on a third phase of quantitative easing, shorthand QE3, said William Dudley New York Fed president, a close confidant of Federal Reserve Chairman Ben Bernanke. Dudley believes that the economy’s recovery is still fragile, despite the recent signs of improvement. If not handled properly… Continue Reading

Fed Chief Ben Bernanke Addresses Community Bankers of America

Federal Reserve Chairman Ben Bernanke said in a pre-recorded speech delivered at the convention of Independent Community Bankers of America that, despite the slow improvement of the US economy, American community banks are developing and getting stronger. The remarks were broadcast on a video monitor at the convention of community bankers held earlier this week… Continue Reading

Jackson Hole May Put Us in a Deeper Hole

Investors are pinning their hopes on market salvation stemming from Bernanke’s address at Jackson Hole, Wyoming this Friday. Many people believe he will take the time to introduce QE3 since he used the same venue to introduce QE2 allowing markets to rise above their present levels. “As the week progresses, all eyes will turn to… Continue Reading

Bounce Day After Crash

There has been a bounce today in Wall Street a day after a huge 6% sell off.  Most investors are trying to grab stocks at lower valued prices, yet most investors and analysts are clear that the drop will continue over a long time since the economy’s fundamentals are  weak.  Some say the US has… Continue Reading