http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve Should We Blame the Stock Selloff on the Federal Reserve Stocks have started the year on a downward track. Energy stocks are hurting due to continued low oil prices and bank stocks have joined in the race to the price bottom. Amidst the commentary we found an article in CNBC online quoting Deutsche Bank as saying that only the Fed can save stocks. Are we now going to blame the stock selloff on the Federal Reserve? The prolonged sell-off in risk assets across the globe will only abate if the U.S. Federal Reserve changes its path and begins to loosen its monetary policy once again, according to strategists at Deutsche Bank. Chinese growth fears, stress in the U.S. energy sector and fragile balance sheets in European financial companies have all been credited in the last week for fueling the sell-off. However, there’s only one real cure for this current bout of weakness, according to a team of European equity analysts at the German bank, led by Sebastian Raedler. Raedler said that U.S. high-yield spreads – the difference between investment grade and non-investment grade bonds – have risen above their 2011 peak and warned of the potential for a self-fulfilling “full default cycle.” He highlighted the stress had started with energy firms – that have been hit by the oil price plunge – but added that it wasn’t confined to this sector.

1. Should We Blame the Stock Selloff
on the Federal Reserve
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Stocks have started the year on a
downward track.

3. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Energy stocks are hurting due to
continued low oil prices and bank
stocks have joined in the race to the
price bottom.

4. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com
Before We Continue…

5. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Amidst the commentary we found an
article in CNBC online quoting
Deutsche Bank as saying that only
the Fed can save stocks.

6. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Are we now going to blame the stock
selloff on the Federal Reserve?

7. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
The prolonged sell-off in risk assets
across the globe will only abate if the
U.S. Federal Reserve changes its
path and begins to loosen its
monetary policy once again, according
to strategists at Deutsche Bank.

8. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Chinese growth fears, stress in the
U.S. energy sector and fragile balance
sheets in European financial
companies have all been credited in
the last week for fueling the sell-off.

9. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
However, there’s only one real cure
for this current bout of weakness,
according to a team of European
equity analysts at the German bank,
led by Sebastian Raedler.

10. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Raedler said that U.S. high-yield
spreads – the difference between
investment grade and non-investment
grade bonds – have risen above their
2011 peak and warned of the potential
for a self-fulfilling “full default cycle.”

11. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
He highlighted the stress had started
with energy firms – that have been hit
by the oil price plunge – but added
that it wasn’t confined to this sector.

12. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Let’s remember that after a dramatic
several months the Fed raised its
interbank lending rate by a quarter
of a percent and promised to hold off
on other rate increases until the
economy is stronger.

13. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Of course the Fed finished its
quantitative easing program more
than a year ago as noted
in Bloomberg’s article, The Fed Eases
Off.

14. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
It was the biggest emergency
economic stimulus in history and now
it’s over.

15. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
The U.S. Federal Reserve’s once-in-
a-lifetime program to buy immense
piles of bonds, month after month, in
an extraordinary effort to restart a
recession-deadened economy

16. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Came to an end in October 2014 after
adding more than $3.5 trillion to the
Fed’s balance sheet

17. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
An amount roughly equal to the size of
the German economy.

18. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
The bond-buying program, called
quantitative easing or QE, had been
controversial since its start in 2009, as
had the Fed’s decision in 2013 to
gradually reduce the monthly
economic boost, a plan that became
known as the taper.

19. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
As Deutsche Bank decides to blame
the stock selloff on the Federal
Reserve we have to wonder if they
want have the Fed start printing
money again or roll back a miniscule
quarter percent interest rate hike?

20. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
There are times when the market
needs to take care of the market and
this is probably one of them.

21. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
We have written about how the
economic situation in China
resembles Japan in the late 1980’s.

22. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
A economic miracle is revealed to be
partly smoke and mirrors as too much
industrial expansion fueled by bad
loans acted like the man behind the
curtain manipulating the Great OZ.

23. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
The Chinese economy needs to adjust
however painfully that happens and
the world will feel some of the pain.

24. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
Blaming the stock selloff and general
economic malaise on the Fed is just
short term distraction.

25. http://profitableinvestingtips.com/bond-investing/should-we-blame-the-stock-selloff-on-the-federal-reserve
In the meantime reread our article
about how you can benefit from the
coming Chinese economic
collapse.