Food for thought FED says no QE3 soon......not september...not october.....OUCH!!!
“When the doctor gives you medicine, the good news is you’re getting it, the bad news is you need it,” said Erik Davidson, deputy chief investment officer for Wells Fargo Private Bank, of the potential signals that could be sent by further monetary easing.
The S&P 500 on Friday chalked up a sixth straight weekly gain, lifting it to a near four-year high, as recent economic reports on July jobs and retail sales exceeded expectations.
“We’ve had a good run, so a bit of a reprieve probably makes sense,” Davidson said of Wall Street’s extended run, which has the S&P 500 positioned for its first weekly loss after six straight weeks of gains.
“Historically, the market has a 10% correction every 331 days going back to 1928, with the last one triggered on Aug. 4 of last year. We’re now at 385 days, so we’re getting a little long in the tooth,” Davidson said.