The Fed does it again…

Stock indexes soared to multi-year highs today as the federal reserve announces a $600 billion dollar bond buying spree. This stimulus action will most certainly provide significant support for the markets and was the main reason why we saw global equity strength across the board. Also today the S & P 500 broke through the psychological mark of 1200 to close at 1221, yet another bullish case for stocks.

So how does one capitalize now on equities? In this accommodative environment courtesy of the federal reserve, I would expect that when the markets do pullback this would be the opportune time to put capital to work. Even if the markets had a correction of 5-10%, the floor that the feds have put in with a $75 billion a month bond buying spree and interest rates kept near zero, these two factors alone is giving this perma-bull all the confidence needed to put capital to work.

Good luck to all 🙂

~George