Monday, June 24, 2013

Why Stocks Got a Jolt


In the New York Times the other day, William D. Cohan presented his explanation for the recent 500-point (3%) pullback in the Dow Jones Industrial Average.
He begins by reporting the words uttered by Fed chief Bernanke that apparently prompted the stock losses:
He said the economy looked as if it was slowly improving, that Fed officials saw signs that employment was picking up and that the inflation rate was hovering below the Fed’s target of 2 percent.
Sounds like good news, doesn’t it? Mr. Cohan agrees.

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