Steve Sosnick, Interactive Brokers’ chief strategist, discusses liquidity concerns in the current market.
Given the recent activity, risk management tools are something most investors are looking at more than usual.
Photo Credit: G. Starke via Flickr Creative Commons
Keep some cash on hand for an emergency fund and opportunistic investments.
As the Federal Reserve prepares for its May 1 FOMC meeting, investors are focusing on the potential for rate cuts, but another aspect of Fed policy decision-making is flying under the radar – the balance sheet.
Market participants are pressing the pause button on Wall Street’s recent stock rally as they sift through a buffet of remarks from Fed speakers. Federal Reserve speakers yesterday emphasized that the current fed funds rate is restrictive and is likely to continue to support disinflation, but more evidence is needed that price pressures are easing in a sustainable manner before the central bank lowers rates.
While trade tensions with China dominated the attention during the week, some bank news also captured investor interest. Stocks pushed higher last week, buoyed by strong third-quarter results posted by several money center banks.
