Puffed Up on Words
There is an old adage we've all heard a thousand times: Actions speak louder than words. Yet here we are, with the European Central Bank and Federal Reserve taking no action but giving us plenty of words -- and the market seemingly prefers it that way.
Or maybe this is the new version of the Goldilocks markets. In the 1990s, that referred to the economy, which was seen as being "just right." At this point, that clearly no longer describes the economy -- so perhaps, these days, the term would refer more to the market's preference that the central bankers just speak and don't actually act. After all, we have had nothing but words for three months, and the market has done just fine. That, in itself, seems to make it "just right." Does this means we should actually be scared if action is taken?...618 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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