Jim Iuorio and Scott Nations on Fed Tapering

On a CNBC program (Into the Futures), Friday noon, Jackie DeAngelis, took a quick look at what’s in store for the market this week. What’s the best way to play this week’s Fed announcement? “The FOMC is expected to continue on autopilot at the meeting on Tuesday and Wednesday and tapering will very likely continue – bringing the Fed’s monthly asset purchases to USD35bn” (ActionForex). Jim Iuorio and Scott Nations discussed these, and some other topics, with Jackie DeAngelis.

First off, what’s “tapering”? “Tapering” refers to the reduction in the size of the U.S. Federal Reserve’s bond-buying program, known as quantitative easing (QE). The program was conceived as a stimulus for the economy, but in practice, it has also helped support the financial market performance.

Regarding this issue, Jim Iuorio stated:

“I think they [the Fed] will continue with everything as planned; with a $10 billion dollars taper. The wild card here is that the increased debt of ‘15, with the situation that seems to be heating up in a rack, I don’t think they could do that right now. The ironic part is that, absence of that, the Fed could accelerate tapering, just because of the fact that the ECB and the BOJ still keep throwing the pudding in the system, and people will be probably buying our bonds anyways. But definitely keep an eye on Wednesday [on the Federal Reserve Open Market Committee, FOMC, meeting], it will be interesting”

Following, Scott Nations talked about his best trade this week:

“I want to be sure at the SoP, for some of the reasons that Jim has laid out, and he’s talking about the Fed, which is absolutely vital (…) Middle of last week, the taper going to $15 billion a month; that was actually probably going to happen. And on Monday of last week, the Fed’s speak was really chesty. People saying that they really wanted to increase interest rates faster than we would have thought. Now, given the way that Iraq dominated the news of last half of last week, we’re probably not going to see some of that, but they will keep the track of the taper, and that’s actually probably not all that the stock market needs. The stock market needs them to be a little bit more dovish right now.”

Disclosure: none

 

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!