NEW YORK ( ETF Expert) --In the steamy September days of central bank euphoria, back around Sept. 13-14, Federal Reserve Chairman Ben Bernanke announced the Fed would immediately begin purchasing $40 billion in mortgage-backed securities each month. What's more, the chairman did not include an end date for the quantitative easing program known as "QE3."
Bernanke's summertime bazooka sent S&P 500 stocks skyward, as the heralded benchmark hit an intra-day level of 1,474. Scores of media players began chatting up the possibility of year-end highs in the mid-1,500s.
One month later, however, the S&P 500 has shed some 50 points off of its 52-week peak. Perhaps ironically, the declines have occurred in spite of the best consumer sentiment reading in five years as well as the lowest unemployment rate reading in 3 1/2 years.
Does this mean that QE3 has essentially lost its mojo? Is it a classic case of buy the rumor sell the news? To some extent... yes on both.There has also been a shift in focus back to a number of poor earnings reports as well as a rekindling of the European debt crisis. Most notably, Spain has yet to budge on agreeing to the European Central Bank's bailout terms. Nevertheless, QE3 is still benefiting