X
Tired?
Unfocused?
Off your game?

Read our free Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
YES, SEND ME THE REPORT !
NO, I'M NOT INTERESTED
Your email will always remain private.

Frequently Asked Questions

Market Lab Report
If Ben Bernanke announces that QE2 is the last of the easing policies for now, will there be a negative market reaction?

Q: Do you think the market is expecting an announcement of QE2.5 or QE3 (quantitative easing) in Wednesday's [April 27, 2011] meeting? If Ben Bernanke announces that QE2 is the last of the easing policies for now, will there be a negative market reaction? Wondering if I should ease up on long positions or hedge going into Wednesday's meeting?

 

A: There is no need to try and predict the news and the market's reaction. Just watch what the market does. We don't have a crystal ball, so we really can't answer any of these questions definitively, and we don't "adjust" positions while trying to predict the news. For example, if we had known Standard & Poor's was going to downgrade the U.S. credit-watch to negative last Monday [April 18, 2011], what should we have done? Should we have sold all our stocks? That would have been a big mistake. Even if you could predict the news, you can't predict how the market will react. Don't waste your time trying.


Published: Apr 24 2011