Stocks Explode Higher on Fears of Renewed Economic Weakness

Posted by

I swear I’m not auditioning for The Onion. This is what actually happened.

Peter Boockvar on the Fed’s minutes, released at 2pm:

While nothing new, according to the just released FOMC minutes from the meeting 3 weeks ago, a majority of the committee remains deathly afraid of raising rates off zero. They still have very little faith right now in the ability of the US economy to handle a short rate at a range of anything above zero to 25bps…

The line that got markets excited however, a market that doesn’t want any policy accommodation removal whatsoever, was this: “a number of participants noted that economic growth over the medium term might be slower than they expected if foreign economic growth came in weaker than anticipated, structural productivity continued to increase only slowly, or the recovery in residential construction continued to lag.”

Of course, this phenomenal news of continued emergency-level interest rates and economic fragility immediately led to a raucous two hours of buying on top of buying, with the Dow finishing up 270 points, it’s best single day performance in a year.

Here’s what it looked like:

minutes

Find that in your textbooks.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. 10 Thursday AM Reads | FAN FICTION PLANET commented on Oct 09

    […] Stocks Explode Higher on Fears of Renewed Economic Weakness (TRB) but see Fat Lady Is About to Sing, According to the Charts (Barron’s) • Why Companies […]

  3. Top Newsstuffs (October 6-12) | The Buttonwood Tree commented on Oct 12

    […] FOMC minutes takeaway: stocks explode higher on fears of renewed economic weakness | Josh Brown (The… Sounds like a paradox, but that’s exactly what happened on Wednesday, when FOMC minutes were released, showing concern with signs of potential economic weakness that pushed-out the market’s expectations for a rate hike: “The costs of downside shocks to the economy would be larger than those of upside shocks because, in current circumstances, it would be less problematic to remove accommodation quickly, if doing so becomes necessary, than to add accommodation.” Notes: – Forward guidance language evolution: “considerable time” language will likely change so as not to misconstrue the Fed as being calendar (as opposed to data) dependent – Strong dollar: monitoring its impact, specifically weaker exports and lower inflation – Inflation: still below 2% long-run target due to fall in energy prices #Bad is good again #ZIRP #Rising rates #Fed Funds Rate $DXY […]

  6. curtis commented on Dec 11

    .

    ñïàñèáî çà èíôó.

  9. Bruce commented on Dec 21

    .

    tnx for info.

  10. hugh commented on Feb 14

    .

    thank you.

  11. Blue Coaster33 commented on Apr 26

    Thorn of Girl

    Superb information is often found on this web website.

  12. Bitcoin Evolution Review commented on Sep 23

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2014/10/08/stocks-explode-higher-on-fears-of-renewed-economic-weakness/ […]

  14. bitcoin evolution review commented on Oct 03

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2014/10/08/stocks-explode-higher-on-fears-of-renewed-economic-weakness/ […]

HowIInvestMyMoney