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

What Janet Yellen Doesn't Want You to Know About QE5

So if inflation closes in on our 2.2% floor much faster, the possibility for QE5 -- or even more likely, an anti-taper -- is starting to look more probable than it has in a long while.

Do As I Say, Not As I Do

If it sounds like there's a disparity between a possibility of QE5 and what the Fed's been saying lately, it's because there is. But it's mind-boggling that some people think the Fed is in favor of full disclosure.

After all, talk is cheap, and QE isn't.

Must Read: 4 Hot Stocks on Traders' Radars

I said back in June that the language chosen by the Fed in its first taper hints was carefully chosen as a tool to aid in the fight against inflation. Testing the market's reaction to QE moves is a lot more cost effective than actually doing it.

So no one should be surprised if Fed officials are starting to think about more easing at the same time they're telling the media that the taper is sticking. The two key words for Fed statements are "plausible deniability." And frankly, they should be. If the Fed can positively impact the markets without resorting to pumping money into the system, it should.

>>5 Cash-Rich Stocks That Could Triple Your Gains

Meet the New Boss, Same as the Old Boss

Make no mistake, though, Yellen isn't some major change from Ben Bernanke's Fed. The new boss is very much the same as the old boss The biggest difference is that now Bernanke gets to wear his Hawaiian shirts again. The heat is off him for a change.

If anything, Yellen is more apt to hike quantitative easing than Bernanke was. That's worth remembering as inflation drifts down toward the 2.2% mark. Most important, it means that we're likely to remain in an environment that rewards stock investors.

To recap what I said back in June, stocks are still the most attractive asset class out there by virtue of the fact that investors have no other choice. Thats not the most exciting driver of a rally, but its reality. Broad market ETFs such as the SPDR S&P 500 ETF (SPY) and the PowerShares QQQ Trust (QQQ) remain some of the most attractive ways to get exposure to the trend right now. But this is still a stock-pickers market. Names with increasing relative strength will continue to be the best way to buy stocks in the near-and-long-term.

>>3 Big Stocks Getting Big Attention

2 of 3

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

Check Out Our Best Services for Investors

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
SPY $206.02 -0.69%
QQQ $105.45 -0.78%
AAPL $92.82 -2.10%
FB $116.64 -0.08%
GOOG $692.74 0.25%


Chart of I:DJI
DOW 17,716.22 -114.54 -0.64%
S&P 500 2,062.05 -13.76 -0.66%
NASDAQ 4,770.6170 -34.6740 -0.72%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs