Based on signs of overall improvement in the U.S. economy, analysts believe that the Federal Reserve will continue the process of tapering its bond-buying stimulus. What will happen at Ben Bernanke’s last meeting as chairman of the Fed today? Ann Saphir and Jonathan Spicer cover the story. Recently released figures show that the margin debt for the New York Stock Exchange has hit an all-time high. Based on previous correlations between margin debt and downturns in the performance of equities, Doug Short sees this potentially as a warning for investors. He explains why with a series of graphs. If you’re thinking of leaving your IRA to your grandchildren, you need to take some precautions. Our final article explains how you can make sure your grandchildren receive your legacy and manage it responsibly.
Fed Poised For $10 Billion Taper As Bernanke Bids Adieu– Turmoil in emerging markets and a month of disappointing job growth at home are unlikely to deter the Federal Reserve from trimming its bond-buying stimulus. On Wednesday, Ben Bernanke wraps up his last policy meeting at the helm of the U.S. central bank. http://www.reuters.com/article/2014/01/29/us-usa-fed-idUSBREA0S0CL20140129
NYSE Margin Debt Hits An All-Time High– Doug Short illustrates the correlation of NYSE Margin Debt to cycles in the stock market. He shows that the troughs in the monthly net credit balance preceded peaks in the monthly S&P 500 closes by six months in 2000 and four months in 2007. Short says, “There are too few peak/trough episodes in this overlay series to take the latest credit-balance trough as a definitive warning for U.S. equities. But we’ll want to keep an eye on this metric in the months ahead.”
Pass An IRA To Young Grandkids With Care– Leaving an IRA to your grandchildren can be one of the greatest gifts a grandparent can give. But you should take some precautions to protect your legacy. This Kiplinger article explains why. http://t.kiplinger.com/kiplinger/#!/entry/pass-an-ira-to-young-grandkids-with-care,52d06175e56d0bb8534888e7/4
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller