Understanding the stock market and the Fed - Dallas News | myFOXdfw.com

Understanding the stock market and the Fed

Posted: Updated:

Jonathan Citrin, Founder and Executive Chairman of Citrin Group in Birmingham provides the following information about the Federal Reserve and how it effects your stocks. 

CitrinGroup | (248) 569-1100

Understanding the Fed

The Federal Reserve = interest rates + bond buying. 

Stock markets must STOP watching the Fed.   A few weeks ago we saw a huge sell off in stock markets for several days when the Fed announced it may stop some of its stimulus.  It is clear that stock markets are watching the Fed very closely.  This is very timely.  The Fed is buying $85 billion in treasuries and mortgage backed securities every month. This brings interest rates down and has  resulted in higher stock prices. Jonathan Citrin believes the market should NOT be watching the Fed--only borrowers should.

Borrowers be-aware.  The only people who should be watching the Fed are borrowers (those looking for a mortgage, or  investing in an education or business through borrowing.)  Actually, this is the intent of what the Fed is doing in keep rates low but also warning that they may rise sooner than originally expected - they are trying to get people to be nervous about inflation so people buy (homes, etc) sooner than later.·

No one  knows the future.  -- It is important to  realize the reality around rates, the Fed, and markets - that no one knows (despite pontifications) where things will go.   Remember one essential thing- stop listening to those who claim to know!!  Listen to someone humble enough to admit that markets are unpredictable.

  • Murray FeldmanMurray FeldmanMore>>

  • Money Monday: Social media safety

    Money Monday: Social media safety

    Monday, July 7 2014 9:31 AM EDT2014-07-07 13:31:18 GMT
    The internet is like an elephant -- it never forgets. While spoken words leave little trace and are quickly forgotten, written words endure in the online environment. Whatever you post, tweet, update, share -- even if it's deleted immediately afterwards -- has the potential to be captured by someone, somewhere, without your knowledge.
    The internet is like an elephant -- it never forgets. While spoken words leave little trace and are quickly forgotten, written words endure in the online environment. Whatever you post, tweet, update, share -- even if it's deleted immediately afterwards -- has the potential to be captured by someone, somewhere, without your knowledge.
  • Money Monday: No one has a crystal ball on the market

    Money Monday: No one has a crystal ball on the market

    Monday, June 30 2014 10:44 AM EDT2014-06-30 14:44:05 GMT
    Jonathan Citrin of Citrin Group talks about how make investments after so-called experts were flat wrong about predicting how the market will perform.Play the video in the player to see his interview with Murray Feldman.Click here to learn more about the Citrin Group.
    Jonathan Citrin of Citrin Group talks about how make investments after so-called experts were flat wrong about predicting how the market will perform.Play the video in the player to see his interview with Murray Feldman.Click here to learn more about the Citrin Group.
  • A CEO's exit interview: Alan Mulally on his 8-years at Ford

    A CEO's exit interview: Alan Mulally on his 8-years at Ford

    Wednesday, June 25 2014 4:17 PM EDT2014-06-25 20:17:56 GMT
    Five short videos in what could be described as an exit interview to the media.  For business people of all kinds, there is some real insight to be had here as Murray Feldman poses questions that go beyond the auto industry.  Alan Mulally is candid with his answers.
    Five short videos in what could be described as an exit interview to the media.  For business people of all kinds, there is some real insight to be had here as Murray Feldman poses questions that go beyond the auto industry.  Alan Mulally is candid with his answers.
  • Local NewsLocal NewsMore>>

  • Livonia man dies after 2 dogs attack him

    Livonia man dies after 2 dogs attack him

    Thursday, July 24 2014 8:25 PM EDT2014-07-25 00:25:21 GMT
    A 46-year-old Livonia man was killed Wednesday evening after he was attacked by two dogs while jogging in Metamora.
    A 46-year-old Livonia man was killed Wednesday evening after he was attacked by two dogs while jogging in Metamora.
  • Water shutoff protests amid water delivery from Canada

    Water shutoff protests amid water delivery from Canada

    Thursday, July 24 2014 7:30 PM EDT2014-07-24 23:30:25 GMT
    Our neighbors across the Detroit River are now getting involved in the Detroit water shutoff debate.
    Our neighbors across the Detroit River are now getting involved in the Detroit water shutoff debate.
  • Renisha McBride's family leaves courtroom as photos are shown

    Renisha McBride's family leaves courtroom as photos are shown

    Thursday, July 24 2014 6:29 PM EDT2014-07-24 22:29:16 GMT
    On day two of the trial for Renisha McBride's shooting death, the final hours of her life and the moments after her death were detailed in court. Thursday the jury heard what Ted Wafer, her accused killer, told police about the shooting that night.  
    On day two of the trial for Renisha McBride's shooting death, the final hours of her life and the moments after her death were detailed in court. Thursday the jury heard what Ted Wafer, her accused killer, told police about the shooting that night.  

Powered by WorldNow

KDFW FOX 4
400 N. Griffin Street
Dallas, Texas 75202

Main Station Directory:
(214) 720-4444
News Fax:
(214) 720-3263 or (214) 720-3333

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices