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Easy Money and Stock Bubbles

Submitted by Brenda Wenning on Wednesday, April 8, 2015 - 9:00am

The problem is that easy money policy is not so easy anymore. It never did prop up the U.S. economy, in spite of Keynesian enthusiasm, but at least it created the illusion of economic health by propping up the stock market. Now, it’s unable to do even that.

Why Dividend Stocks Are Off

Submitted by Matthew Tuttle on Tuesday, April 7, 2015 - 9:00am

At some point this year, interest rates should go up. What will happen then to dividend-paying stocks? Because they benefited when fixed-income rates were low, they will dip – and some already have, in anticipation. Over the long pull, however, dividend payers do well.

The Fed’s Morphine Drip

Submitted by Kevin Flynn on Monday, April 20, 2015 - 9:00am

The stock market is far ahead of the real economy. But the Federal Reserve’s prolonged exercise of keeping interest rates unreasonably low keeps feeding this bubble. In effect, the Fed is keeping the financial markets on a morphine drip.

A Push-Me, Pull-You Market

Submitted by Nicholas Atkeson and Andrew Houghton on Thursday, April 16, 2015 - 9:00am

Expect choppy markets ahead. That’s what we’ve seen lately, and there’s more reason than ever to expect this to continue. Bullish and bearish factors are at war, producing frustrating up-and-down stock market movements.

3 Reasons for a Good GDP

Submitted by Ray Ferrara on Tuesday, April 14, 2015 - 9:00am

We are nearing the six-year mark of economic recovery, which started in June 2009. The average expansion since World War II, according to the National Bureau of Economic Research, is just under five years. But the current one, admittedly tepid, should continue for three good reasons: rising employment, recovering housing and stronger manufacturing.

Trends: Dangerous Illusion

Submitted by Lon Jefferies on Friday, April 10, 2015 - 9:00am

Focusing on market trends is a foolish way to invest – essentially betting that what has done well will continue to thrive. A new book from financial guru Tony Robbins, for instance, looks to the past to plan for the future. We all love, even need, predictability. But depending too much on what’s come before in the markets can turn your portfolio into a train speeding toward a wreck.

Rates: the Fed vs. the World

Submitted by Nicholas Atkeson and Andrew Houghton on Thursday, April 9, 2015 - 9:00am

At some point this year, the Federal Reserve aims to raise interest rates. Trouble is, the rest of the world is going the other way, slashing rates to boost flagging economies. The Fed will have a tough time engineering higher rates, especially longer-term ones, when the global tide opposes it.