When I was a kid sometimes I got lucky and got to stay up late on a Friday night to watch Johnny Carson. Johnny Carson did a skit where he was the “Great Carnack.” The Great Carnack was able to predict the future! Today we have the “Bernack” Ben Bernanke, the head of the Federal Reserve and the United States monetary policy. Like the “Great Carnack” the Financial Community hangs on to every word that the “Bernack” pontificates. Yesterday, For the first time in Federal Reserve history Ben Bernanki gave a press conference to shed some light on the Fed Monetary Policy. Lucky for every one here I spent my afternoon listening to the “Bernack.” His conference was nothing exciting, be thankful for that because if there was a new economic development our financial markets would have been rocked. While his conference was benign and with no surprises he predicted his same monetary policy of a LOW INTEREST RATE policy to grow jobs only concerned about inflation from a distance. His fear of a no job growth economy is more of a concern of that of a strong US Dollar. Which means the dollar will continue to decrease in value and equities and commodities will continue to rise. The markets DOW, SP500 and Nasdaq all did well yesterday. The SP500 finally finished above our magic 1350 level at 1355.
Is it all systems go yet? Almost, but we must see just one or two more closes over that 1350 level. Will the markets be off to the races? Probably not, we are starting to come into the summer months which marks low volume and Wall Street Traders going on vacation. Because Ben Bernanki’s policy dosen’t give investors many choices to do with their money. Institutions have to deploy money on a monthly basis, the only choices for funds are equities or gold / silver at this point which means stocks and commodities should go up.
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