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 Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!