Saturday, August 27, 2011

Ben S. Bernanke Talisman Key

In a widely awaited speech by Ben S. Bernanke, says the Fed was prepared to stimulate a battered U.S
  1. Ray of Hope: Bernanke Says Fed Will Do `All It Can' to Ensure U.S. Recover,
    He also said that the “preconditions” for a pickup in growth in 2011 “appear to remain in place.”

  2. Talisman Key: The Fed has several tools if prices decelerate
  3. Communications Strategy: The Fed will keep its benchmark rate low for a “longer period than is currently priced in markets.”
  4. Market response: The Nasdaq surged 2.5%, the S&P 500 1.5% and the Dow Jones industrial average 1.2%. Nasdaq volume trade rose
As an investor one can take positive clue out of the above discussion and hope market has bottomed up. But it will take it's own time before consolidation and recovery.

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