Concern About FED Tightening Reverses Psychology And Becomes Another Reason To Buy Equities
FED minutes were released early showing concern about exit from $4T inventory of bonds and further effects of QE like the current asset bubble, future inflation or losses from balance sheet.But economic conditions may still warrant further QE for several months.
Broad Market Rally up 1%-Technology Finally Participating-NAZ Up 1.8%
Most major sectors are up except materials. Energy is a laggard, but big winners are TECH up 1.76%, Consumer cyclical up 1.76%, Financials up 1.63% and Healthcare up 1.4%. The materials sector is down. Some pundits have opined that the rally is futures and index driven by European and Japanese buyers as well as hedge funds who are flush with cash for trading. Short covering has also fueled this rally.
All large cap drug stocks are up 2% or more so the search for yield continues and was evident in the buying of laggards like CSCO, INTC and MSFT. AAPL has a yield of 2.5% and is also up 1.95%. Large caps biotechs resumed their run with AMGN, BIIB, CELG, and GILD all up BIG. The IBB broke out with a new high near $165 .