Economy, Investor | featured news

The Federal Reserve will begin later this month to publish a forecast of its own actions, inaugurating a policy that is intended to magnify the power of those actions by shaping the expectations of investors.

Bottom Line: Stocks rose in mid-morning trade on Wall Street Tuesday as investors grew more optimistic that the Federal Reserve would announce new moves to stimulate the economy.

If we did not find ourselves smack in the middle of the Holiday season, I’d probably be talking about how the bull camp’s momentum appears to be waning and that we should be bracing for a meaningful pullback in response to the tiring trend, the overbought condition, and the overly optimistic sentiment readings. And while these issues are indeed present, it appears that the holiday spirit and the corresponding portfolio allocations may be the primary driver to what I will loosely term the current trend.

The stock market rebounded Wednesday after a stronger-than-expected increase in pending home sales restored investors' optimism about the economy.

The euro and growth-linked currencies fell Monday as investors unwound risky trades amid growing worries about eurozone's debt problems, dismissing assurances from European finance ministers at the weekend.

Prices have dropped as traders and investors acknowledge that a global recovery will take longer than hoped.

Investors booked gains on last week’s rally and turned cautious about claims that the global economy is past the worst and ready to recover.