Page 47 - Tapering News Today

Invested in the market, how to interpret this information. we thinks that the net outcome of this for the next two weeks is going to be essentially a lack of volume going through the market. we really -- we really seeing an absence of direction here. without wanting to -- without wanting to be vague, i think the markets are very, very confused. one thing that is actually not confusing is the risk appetite is very, very low right now. >> right. during the last shutdown, way back in 1995, the mark...

Lets talk about what accredited nations like japan, china, all those countries that buy t-bills that keep the u.s. economy going. they dont care about obama care but they do care about stability. how do they look at the events? >> i think specifically china as far as we can tell is going to be a net benefactor of this, other than from the fact they can sit here and go, a-ha, you have prop problems with democracy over there. the actual result of this particular decision, a, will increase focus an...

We expect u.s. markets to react when they open. markets in asia seem to be shrugging off the shutdown. lets take a look at the latest numbers. nikkei up by 0.5%. seoul up by almost 0.5. shanghai and hong kong are closed today for holiday. >> ben collette, sunrise brokers, joining us live from hong kong. what do you make of this ho hum so far reaction from the asian markets? >> well, you know, i think by and large it really sums up the fact that no one, certainly investors in asia and outside of ...

Lower interest rates are a natural conclusion to this event. the event has created more uncertainty. given in a period of uncertainty you go to your historically safer assets. treasuries arent that safe but under certain circumstances, tapering, cha ch has been taken off the table, is not going to be put on. the natural response from an asian point of rue is probably more towards dollar weakness. more towards repatriation of funds and yen strengthen. theres no follow through in equity market, ce...

Opportunity for people who have been waiting on the sidelines. >> thats looking at the glass half full. if the stock market tanks today that might put some pressure on lawmakers to come to some sort of agreement. >> yes, absolutely. you know, i do also want to mention that the s&p 500, if you look at previous government shutdowns the s&p 500 fell about 3.7% during the last shutdown from 95 to 96 and it rebounded higher by about 10% the month following so its going to be interesting to see but th...

Market moves here. could mean cap on mortgage rates for now. may be even lower mortgage rates. yesterday when we thought the fed was going to be tapering or many thought the fed would taper the biggest risk is higher mortgage rates for all of us. they might go down a little bit. >> if youre and investor and not making money in this stock market, youre bad at it basically. >> fire your broker is what i would say. if you have exchanged traded funds and tracking the s&p 500 or plain vanilla funds i...

Been slow job growth. >> there are fewer people working but even fewer people looking for work, so that meant that the unemployment rate came down, but for the wrong reasons. >> reporter: companies are used to getting by with fewer workers since the recession. that and slow economic growth put ben bernanke and whoever succeeds him in a tough spot. and so now the speculation rampant about when the fed will take the training wheels off the economy. ubs says it thinks the fed will hold off on taper...

In london. are we expecting the market to react muted? >> yes, exactly what we expect. the market will react obsessively about tapering regardless. you and i have been looking at this for a longer time. i came back from russia last week and emerging nations are obsessed by quantitative easing and the equal of that. so whether its $10 billion or $15 billion in real terms makes very little difference to the u.s. economy, but it makes an enormous amount of difference to confidence. people want the ...

We dont -- >> youre right. >> how she was recovered. everything is very, very vague at this point. but what we do know is that if children are going to be murdered as a result of a kidnapping, that 75% of them or thereabouts will be dead within the first 24 hours. so time is an incredibly critical factor in these types of situations. and again, its a testament to law enforcement and the public and the media, how far we have come in understanding these issues and dealing with them. >> thank goodn...

1.5% increase in long-term mortgage rates. we will see that probably rise even more over the next six months to a year as less stimulus is put in because less bond buying means yields go up, prices go down. dont worry about the mechanics. just look at what it means for your mortgage. if youre on a fixed rate mortgage, of course, youre locked in, good luck to you. youve got 30 years at this. but if youre looking to get a mortgage, start factoring in how much you can afford to pay if rates go up h...