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How Will Twist Impact the Markets?

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  • Description

    Relative Value Partners CIO Maury Fertig on what's impacting the markets today.

  • Duration 2:53
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So much -- and thinking.

Aren't we keep on twisting may be a little shouting -- is a Federal Reserve extends operations went through the end any -- plans to keep interest rates at these exceptionally low levels through at least late 2014.

For the impact on the markets.

And if this is what they were expecting the market players that is I'm pleased to be joined by Mike -- -- -- relative value partners.

Chief investment officer hey -- -- -- Hi good how are you okay so we've got -- I doubt now not rallying but rising.

Slightly up the best close the session after selling off after the decision was first announced and the market reaction especially as we lead -- To Ben Bernanke's press conference.

Well the market -- that this has been the most likely outcome if you look at what economists were looking for.

And I think if you look at trading the last few days I think there were is certainly some possibility that there could be.

Further quantitative easing or this could be a bigger there could get a bigger package in terms of the the bond buying it for the twisting it.

And does so -- that it was mildly disappointed however are the other news today about.

Merkel saying she's -- the possibility of sovereign debt buying has really caused a rally in Spanish and Italian bonds today I think that has been.

A big part of what's brought our market down so I think that.

Coupled with a fed move in line with expectations has created eight a decent market on a day after we've -- a yeah serious stuff four day rally.

You see you cannot -- discount the impact of the European threat of contagion if you will.

By all means -- but you know you mentioned the rally the last couple -- days how depended.

Is the bullish posture time.

The continuation of some kind of fed stimulus and it it it is that a good way to play the -- as an investor.

Well I don't I don't know how much the Fed is having an influence right now -- in the economy.

As.

You know has had been doing better I think we have been overwhelmed by what's happening out of Europe I think.

If I think Bernanke's left open the possibility that they'll be they'll be.

Another quantitative easing move potentially.

Could be as soon as the next meeting which ends on August 1.

And I think the markets.

Looking at that is a is a possibility if we see continued soft economic data or.

More bad news -- -- -- more and more or less comfortable with risk right now.

I'm less comfortable because we've had this rally it's -- 7% rally we saw the -- go from.

26 down to 1718 now.

So people become a little more complacent the last two weeks.

We have to remember where we were in early June it was you'll things were were really ugly in terms of equity markets and that is when.

I like getting risk and now it's it's probably a time to take a little off okay.

-- -- thanks for your outlook.

Thank you and coming up if.

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