In a much anticipated statement, the Federal Reserve said today that it will not change its present monetary policy of monetary easing. Our first article provides details of the comments from the Fed and the reaction in the markets. This kind of turbulence is often frustrating for investors, but as the Co-Chief of PIMCO explains, it also provides opportunities for those who know where to look. We wrap up this week with a closer look into the economic recovery in the U.S., which, slow as it seems, is shaping up to be the second longest on record.

Federal Reserve Keeps Interest Rates Low; Sees Economy Improving; Will Keep Buying Bonds– The Federal Reserve will keep its version of the monetary printing press running a while longer, and provided few hints Wednesday that the days of extreme easing are coming to a close.
http://www.cnbc.com/id/100828661

The Upside of Market Turbulence – Liquidity shocks, like the one currently cascading through global financial markets, are unpleasant, and frustrating. They can be indiscriminate in their impact. They are hard to explain rationally and, as such, can become incapacitating. Yet, they often create interesting opportunities for those that understand the underlying dynamics and know where to look.  Mohamed El-Erian, Co-Chief Investment Officer at PIMCO, explains these opportunities in this article. http://finance.fortune.cnn.com/2013/06/12/market-turbulence-el-erian/

The U.S. Economic Recovery: Long, Slow, But Still GoingThere’s a lot to complain about when it comes to the U.S. recovery. Unemployment isn’t falling fast enough or far enough. Manufacturing is weak. Gross domestic product is expanding at a modest 2 percent clip. Yet this recovery has one advantage: It keeps going,  as explained in this article from Business Week. 
http://www.businessweek.com/articles/2013-06-13/the-u-dot-s-dot-economic-recovery-long-slow-but-still-going

We hope you enjoy reading these articles along with us and that you find them informative.  Please forward this to your friends and family.

John R. Day, Bill Ennis and Stephanie Davidson

 

Disclosure – The articles mentioned in Mid Week with Day & Ennis are for information and educational purposes only. They represent a sample of the numerous articles that the firm reads each week to stay current on financial and economic topics. The articles are linked to websites separate from the Day & Ennis website. The opinions expressed in these articles are the opinions of the author and not Day & Ennis. This is not an offer to buy or sell any security. Day & Ennis is under no obligation to update any of the information in these articles. We cannot attest to the accuracy of the data in the articles.