Yesterday was another Fed Day for 2012 and the global markets got off to a good start with anticipation of what Ben Bernanke might say come mid-afternoon. Well, after the markets digested the Fed news we actually started trending lower up until Jamie Dimon the CEO of J.P. Morgan made the announcement of a dividend hike and a stock buyback plan. Almost immediately the major banks all started to rally on the news in anticipation that there would be more dividend increases and stock buybacks among other firms. In fact, some have speculated that because J.P. Morgan came out with their news early that it caused all of the stress tests to be released ahead of schedule. Meanwhile, the S&P 500 is at new highs and is looking to break past the critical level of 1400. Only time will tell if it can break through or prove to be a resistance level.
Past performance is no guarantee of future results.
The S&P 500 is an unmanaged index. Investors cannot invest directly in an index.
Eric Marvin, CFP®, CRPC®
JPT031412-423
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