Thursday, July 11, 2013
Chairman Bernanke Pumps Global Markets Higher
Chairman Bernanke pumps global markets with his comment that "the Fed will remain accommodative for the foreseeable future." As soon as those words hit the tape, the global markets immediately reacted in force. The dovish Fed head sees his number one mandate as pumping the stock market higher. The dollar immediately dropped and the dollar index is a touch under 83.0 this morning falling from 84.7 the last few hours. With the weaker dollar, the euro jumps higher and the dollar/yen drops. Gold, silver, copper and other commodities catapult higher on the weaker dollar, up almost +3% this morning. Gold was up almost 50 bucks. WTIC crude oil hit 107 and now backed off to 106. The S&P futures jump higher as well and are +16 at this writing less than three hours in front of the U.S. open. The Dow futures are +140. There is no doubt that free markets are a thing of the past, if they ever really existed. The action last night into this morning clearly illustrates how the Fed and other central bankers control the markets. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.