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Who benefits from the Fed’s decision? Sober Look

This is a syndicated repost published with the permission of Sober Look. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The FOMC’s decision yesterday to continue buying securities at the same pace moved a number of markets. But who exactly benefited from these moves (h/t George H)?  Here are a few select markets.

Stock investors got a nice boost and precious metals investors enjoyed a strong spike. These folks should be quite happy. But then we also saw copper spike almost 4%. It’s not difficult to predict how US manufacturers and building contractors feel about that.

Mortgage rates declined – a full 14 basis points. So that’s the impact on the “real economy” of delaying “taper”? To make matters worse the decline in jumbo mortgage rates was higher than in conforming mortgages. Between the pop in investment portfolios and the drop in jumbo rates, those who are well off to begin with are more likely to benefit from this policy decision. Was that the intent?

SoberLook.com

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