Thursday, September 24, 2009

Cheap Money Policy

We can now safely assume money will remain "cheap". Therefore, stocks, gold, commodities, financial stocks will do well. Here is the relevant paragraphs from today's NY Times:

“Economic activity has picked up following its severe downturn,” the central bank said in a statement after a two-day policy meeting. It said financial markets had improved further, that activity in the housing market had increased and that household spending seemed to be stabilizing.

But Fed officials also cautioned that the recovery would be slow and repeated their vow to keep the benchmark overnight interest rate at virtually zero for “an extended period.” That almost certainly means until at least sometime next year.

The full article is here.

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