The Baby and the Bath Water
A wise man once said, "There is always a bull market out there somewhere." Now that we're finally getting a long-awaited pullback, it's time to find stocks that are down due to overall market weakness, not on their own merits.
This pullback would be much worse -- in fact, we'd be talking about a major shift in the market -- if not for one factor: the Federal Reserve. In addition to purchases of mortgage-backed securities, the U.S. central bank is still buying U.S Treasuries via Operation Twist, which is scheduled to be completed by year's end. When Operation Twist runs its course, expect the Fed to announce new measures involving the purchase of Treasuries. This should help keep an otherwise moribund market afloat....412 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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