This Day On The Street
Continue to site
ADVERTISEMENT
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

More Stimulus: The Case for Continued QE

NEW YORK ( The Street) -- How effective has QE really been? 


True, it has underpinned the U.S. market rally and helped investor confidence. But unemployment remains stubbornly above the Fed's 6.5% target while gains in inflation have progressively lost steam since 2012, as evidenced by this chart.

Core personal consumption expenditure inflation inched up 1.1% in October, well below the central bank's 2% target. Doves may well argue that a lack of price pressure and still-lackluster jobs market mean QE should stay in place. On the flipside, the raft of strong economic data over the past few weeks paints a convincing case for scaling back stimulus. As Charles Plosser, president of the Philadelphia Federal Reserve Bank told CNBC on Friday: "It would be wise if we began to get rid of this program - I don't think it is doing very much good." He expects the economy will grow 3% next year.

Separately, check out this strong correlation between GDP and consumer spending.




In the U.S. the consumer really is king. While over time, people are spending a higher proportion of their incomes, this year they spent slightly less of their pay-packets as cautious sentiment prevailed despite the market rally. Let's hope the consumer digs deep in 2014.

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $109.27 -1.00%
FB $88.26 0.12%
GOOG $600.70 -0.92%
TSLA $241.93 -1.48%
YHOO $31.58 -2.95%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs