This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Link's Take on the FOMC

NEW YORK ( TheStreet) -- TheStreet's Lindsey Bell and Stephanie Link are discussing what yesterday's FOMC announcement means and which stocks to buy as a result.

Federal Reserve Chairman Ben Bernanke gave the market everything that it wanted except one thing: certainty.

The Fed will continue its $85 billion monthly bond purchasing plan, even though it has seen a much better employment situation and many of the risks to the economy diminish.

However, Bernanke did state the Fed will be flexible with its stimulus in the future, meaning it will eventually taper (but not abruptly stop) quantitative easing. He also reinforced that the Fed would ramp up the stimulus if the economy worsened after tapering begins.

But even with the market-friendly plans, the selling has commenced. Link says this is profit-taking and it's okay. She also suggested there might be uncertainty weighing on traders, since they know there will be tapering, but have no hard data points of when it will begin.

Her biggest concern remains to be bond yields, which continue to move higher as bond prices move lower. She added that if yields continue to climb, there may be questions of whether that will hurt housing or consumers.

However, she continues to like the financials. Specifically, Link likes JPMorgan (JPM - Get Report), Wells Fargo (WFC - Get Report) and KeyBank (KEY - Get Report).

On top of that, she's watching AIG (AIG - Get Report) and Hartford Financial (HIG - Get Report), adding that the companies' restructuring efforts make them attractive names.

Link concluded that you "want to be overweight financials in this environment."

Disclosure: Action Alerts Plus owns JPMorgan Chase, Wells Fargo and KeyBank.

-- Written by Bret Kenwell in Petoskey, Mich..

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AIG $55.83 -1.41%
JPM $63.60 -0.80%
HIG $43.76 -2.73%
KEY $12.42 -1.19%
WFC $50.41 -1.02%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs