Common stocks are having quite the little tantrum today as the Federal Reserve starts to ponder tapering quantitative easing (QE) down the road.
For those watching CNBC today James Bullard, the Fed president in St Louis, made his position quite clear which started off the tumble in stocks. He wonders why the Federal Reserve is buying so many mortgage backed securities during this time of strong housing demand and rapidly inflating prices.
The funny part today is that treasuries are going the opposite direction to stocks as the 10 year treasury is off almost 6 basis points to 1.455%. Seems like rates would be ticking higher–but not the case.
Regardless of market action today I see this as more of the same–interest rates pop and then drop.
Today and over this coming weekend I am looking for new dividend captures for next month. My watch list has been hammered by redemptions and those left on the list are trading at sky high prices–so time to go back on the hunt.