The meat of the Fed statement is the following:
1) to purchase an additional $40 billion of mortgage-backed securities each month, open-ended; and
2) to keep the federal funds rate at 0 to 1/4 percent until at least mid-2015.
From my view, these are both small steps towards an ultimate embrace of nominal GDP targeting. Under that framework, rather announcing a specific dollar amount of purchases, they would simply say that they are going to buy treasuries, MBS, etc. until the growth path of nominal GDP is at a certain percentage target (5%, to pick a number). Nevertheless, that is simply a function of semantics - the end game is beginning to get clearer.
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Are when the contrarian should think about buying. And so I tried. Some AUY LEAPS (filled) and a small mining services company that I like...
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I came across this really interesting chart regarding 2013 and 2014 EPS forecasts by region and globally. Note the very pronounced move fr... -
Apropos the book that I just finished, I re-visited an interview from September with Kyle Bass, where he examines many of the same themes ...