domingo, 23 de junio de 2013

Paul R. La Monica. Ignore the Fed!

June 20, 2013. Yes, the Federal Reserve is important. Stocks are tumbling for a second straight day on fears that Bernanke is about to finally turn off the lights on what's been a great bull market for the past four years.

But the Fed's quantitative easing policy is not the only thing that matters. Whatever happened to good old-fashioned stock-picking?
In this age of QE, "investing" seems to simply boil down to finding the right index exchange-traded fund and letting the whims of correlation do the rest.
But several strategists and fund managers said that the market is now paying entirely too much attention to Ben Bernanke's latest musings on tapering and not enough to how the economy and companies are actually doing. Earnings and revenue. Remember them?
"The Fed is noise. Investors have to try and filter that out and focus on fundamentals," said Jason McPharlin, manager with the Rushmore Equity Income portfolio in Plano, Texas. "I'm not overly worried. Stocks are still a better opportunity than bonds."
Sure, the market is hooked on (phonics?) the Fed's liquidity machine. But if you listened closely to what Bernanke said in his press conference Wednesday, he clearly indicated that the Fed is only going to taper if the economy improves...

No hay comentarios:

Publicar un comentario