What a big mouth

[mrmarket]

http://blogs.marketwatch.com/capitolreport/2014/03/19/live-blog-and-video-of-the-fed-decision-and-the-janet-yellen-press-conference/?siteid=bnbh

Yellen spoke for an hour, but the market only heard three words: “around six months.”
She was asked how long the Fed would wait after the tapering ends before it begins to raise interest rates.
Her answer: “So the language that we used in the statement is considerable period. So I, you know, this is the kind of term it’s hard to define. But, you know, probably means something on the order of around six months, that type of thing.”
She added lots of qualifiers to that, including the assessment of the labor market and the inflation outlook, but the markets only heard “around six months.”
Which would mean the first rate hike could come in the middle of next year, rather than toward the end of the year as implied by the Fed’s “dot plot.”
Did Yellen mean to be that specific? No, but she’s now the Fed chair, and markets will react to what she said, not what she means.

Why even say anything Janet?

[mimo_100]

Here is one opinion on the statement of the Federal Open Market Committee.

https://research.ameritrade.com/wwws/common/reports/report.asp?YYY600_ANWB3qvE43v7V765fRnI/WQYWTFl2xEkfh/9u8uq7D/qv8YB+qPkJKmuCmYlQ6ccC7v7QcY4xpHEgaXpvdM0HHyLBwNYQyO+crlDUGJXYrtBlAJpNJtRvPsRS0lfQL54bdLrqi0lEsFfg8bGsSXWmgSpWAXxsg+0fN5czYeK1Ys=&a=

[tiedyed1]

I locked the majority of my pipeline on Monday in fear of what could happen on Wednesday and it was a sound move with my clients loving me right now.
At the same time, with my overall account balances down like most, I found opportunity to buy WX, JAZZ and REGN last week too.

Extended period of time is no way six months.
Yellen learned a lesson last week and it cost us a temporary step back.
There are just too many negatives weighing the scale to keep rates low and I remain bullish in respect to rates staying down for MUCH longer than six months.

In addition, from what I am seeing, the Real Estate market in the thawing NorthEast is really starting to heat up, with a lot of busy Realtors writing offers and even multiple offers on some homes coming to market.
That being said I am looking at some of the home-builders and jumped into PHM last week too.

-Adam
Old Hippy & Mortgage Pro

p.s. also had a good week seeing the Allman Brothers at The Beacon last Wednesday and Billy Joel at Madison Square Garden on Friday night. Janet Yellen was not going to slow me down!

[Phoenix7]

I locked the majority of my pipeline on Monday in fear of what could happen on Wednesday and it was a sound move with my clients loving me right now.
At the same time, with my overall account balances down like most, I found opportunity to buy WX, JAZZ and REGN last week too.

Extended period of time is no way six months.
Yellen learned a lesson last week and it cost us a temporary step back.
There are just too many negatives weighing the scale to keep rates low and I remain bullish in respect to rates staying down for MUCH longer than six months.

In addition, from what I am seeing, the Real Estate market in the thawing NorthEast is really starting to heat up, with a lot of busy Realtors writing offers and even multiple offers on some homes coming to market.
That being said I am looking at some of the home-builders and jumped into PHM last week too.

-Adam
Old Hippy & Mortgage Pro

p.s. also had a good week seeing the Allman Brothers at The Beacon last Wednesday and Billy Joel at Madison Square Garden on Friday night. Janet Yellen was not going to slow me down!

Old Hippy enjoy yourself , and keep on moving because DEATH is nature's way of telling one to slow down!

[billyjoe]

tiedyed, My dream concert would be seeing the Allmans at the Beacon. The version with Derek Trucks and Warren Haynes is great. Too bad they're both leaving. I talked to Derek at Oberlin College a couple years ago. He was strolling around the campus with Mike Mattison. They probably wondered how I recognized them.

-----------------billy

[tiedyed1]

tiedyed, My dream concert would be seeing the Allmans at the Beacon. The version with Derek Trucks and Warren Haynes is great. Too bad they're both leaving. I talked to Derek at Oberlin College a couple years ago. He was strolling around the campus with Mike Mattison. They probably wondered how I recognized them.

-----------------billy

Billy, the show I saw last Wednesday was one of the best of many I have seen over 35 years.
Trucks and Haynes sound like they are cloned and they do not need to even look at each other to be so perfectly in synch.
Those two leaving, along with Greg's ailing health looks like this very well may be the last year of the ABB, so these Beacon shows are really intense and pure in ways unlike previous years.

For those readers into the NOLA music scene, Trombone Shorty was a special guest last week and that man jamming on a Trombone with Derek Trucks and Warren Haynes was like a magician; and made everyone on stage step it up a notch!

Back to the subject post, Yellen's words are wearing off fast with slight improvements to the Mortgage Backed Security (MBS) market today.

I also got my REGN filled today at 299.

-Adam

[billyjoe]

tiedyed, You've probably seen this ,but ,if not, here it is https://www.youtube.com/watch?v=UauECrCIYl8

-------------------billy

[mrmarket]

Obama really whacked the market today...buying opportunity tomorrow?

[Louetta]

Obama really whacked the market today...buying opportunity tomorrow?

It troubleth me, Large Person, why would FB and TWTR fall 7% because of what Obama said?

[mrmarket]

It troubleth me, Large Person, why would FB and TWTR fall 7% because of what Obama said?

FB I can see weak hands taking their profits....TWTR I have no idea. I still think the market has a lot of catching up to do. 2014 may be a "year of rest" but the engine of the market has 5 years of catching up to do. Valuations are still attractive. Even if interest rates do go up, the stocks I like to buy won't really be impacted. In a higher interest rate environment, the dividend payers and cyclicals will get rotated out of first.

So getting back to Obama...I have no idea why...but he did scare the market. I like the wall of worry, however.

[Louetta]

FB I can see weak hands taking their profits....TWTR I have no idea. I still think the market has a lot of catching up to do. 2014 may be a "year of rest" but the engine of the market has 5 years of catching up to do. Valuations are still attractive. Even if interest rates do go up, the stocks I like to buy won't really be impacted. In a higher interest rate environment, the dividend payers and cyclicals will get rotated out of first.

So getting back to Obama...I have no idea why...but he did scare the market. I like the wall of worry, however.

I agree on Obama, he said just what he had to say, we will defend NATO countries. Putin won't mess with NATO, he knows that will hurt his country. I do think a flight to quality (like today's lower rates) may continue at least near term.

[Louetta]

Janet's back. "Extraordinary commitment (from the Fed) still needed and will be for some time". "Views ... widely shared on FOMC". Bit of a backtrack on her earlier comments?