Low trading volume and an extremely narrow trading range for stocks marked the final Friday of 2013, with the major stock indexes inching lower from Thursday’s record highs. Follow the link below to our review of stocks, bonds, currencies and commodities in 2013’s penultimate week.
U.S. stock market indexes closed at record levels last week, a week in which the Federal Reserve announced it will begin in January to trim its buying of bonds from $85 billion a month to $75 billion. Follow the link below to read how relief at starting the taper and an upward revision to Q3 GDP powered stocks to 2%-3% gains last week.
Stocks have lost their way a bit so far in December, but that cannot diminish the unexpectedly good year that has been 2013. As traders await Wednesday’s policy statement from the Federal Open Market Committee, policy makers no doubt take some encouragement from the Ryan/Murray fiscal policy breakthrough that the Senate will take up this week. Of course, reduced fiscal drag may be the opening that Fed policy makers have been looking for in order to introduce a little monetary drag – four and a half years after the end of the Great Recession. Follow the link below to our review of last week’s market action.