The April Consumer Price Index was released yesterday. For those investors concerned about the prospect of inflation, Doug Short of Advisor Perspectives puts the new numbers into historic context. While momentum stocks have taken a beating recently and a further pullback may be ahead, should that affect your investment strategy? Liz Ann Sonders and her team at Charles Schwab offer some advice on how to keep a clear head in this market environment. Analysts expect bond prices to rise as the Federal Reserve continues to taper its bond-buying program. Will this kill the bull market? James Paulsen of Wells Capital Management explains his position on rising interest rates.
April Consumer Price Index Released– The April Consumer Price Index for Urban Consumers (CPI-U) released Tuesday puts the March year-over-year inflation rate at 1.51%, which is well below the 3.88% average since the end of the Second World War and 37% below its 10-year moving average.
Proper Perspective– The market has taken many hits over the years, from wars, to recessions, to financial and political scandals, to bubbles, and on and on…but it keeps rewarding those who have a longer-term outlook and don’t panic when the inevitable pullbacks come. Liz Ann Sonders and her team write about the proper perspective on today’s market. http://advisorperspectives.com/commentaries/schwab_041214.php
Why Rising Interest Rates Won’t Kill The Bull Market– Stock investors have become increasingly worried about how the market will react as the Federal Reserve ends its extraordinary bond-buying program. Not to worry, says James Paulsen, chief investment strategist at Wells Capital Management. Rising bond yields don’t snuff out bull markets. The real bull-market killer is a collapse in consumer confidence. http://www.kiplinger.com/article/investing/T038-C007-S001-why-rising-interest-rates-won-t-kill-the-bull-mark.html?si=1#4W2UeLLY7oD2A5Z5.99
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller
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