Former Federal Reserve chief Ben Bernanke is now on the speaker circuit providing his views at pricy, private investor meetings. In a speech given last Friday, Bernanke is purported to have stated a couple of very important things: 1) easy money policies and below normal interest rates are here to stay for long time, and 2) Fed will move only very slowly in raising interest rates and will only do so much later than many now expect.
What’s the point? This is a rare glimpse into the “inside thinking” at the Fed and is significant. We think new Fed chief Janet Yellen is following a policy that is a continuation of the Bernanke policy. Important implications for the financial markets include: 1) the easy money, low interest rate environment we have experienced for five years will most likely continue; and 2) continues to be supportive of financial assets, particularly quality dividend-paying stocks.
Link: http://finance.yahoo.com/news/big-ticket-dinners-blunt-bernanke-200233561.html