Out Fox The $treet

Basically in line with expectations. Adding together of reinvestments and the numbers come in at the high side around $900B and $110B per month. All in all, it means higher inflation and higher stock prices. Market may selloff some on the news, but any dips should be bought. Market remains cheap trading at only 13x 2011 EPS estimates of $90+. Statement from New York Fed : On November 3, 2010, the Federal Open Market Committee (FOMC) decided to expand the Federal Reserve’s holdings of securities in the System Open Market Account (SOMA) to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate. In particular, the FOMC directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The FOMC also directed the Desk to continue to reinvest principal payments from agency ...

This a great song for anybody with a sense of humor and a economic interest. Or somebody that wants a basic understanding of Quantitative Easing, but would rather not read an article from Bill Gross or watch CNBC. "Quantitative Easin, the time has come to relever. Lending short-term, baby that's just teasin' - I want to lend forever. Now the credit markets are misbehavin', I think they need a spanking. That's why I'm ready to show them, some very special central bankin'."...... "baby I want to buy the long bond".... "one part pleasin', five parts act of desperation".... "we're going to have to quantitate" Had to delete the embed as it was causing issues with the blog formatting. See the song on youtube.com. 

Interesting Investment Outlook from Bill Gross today. Bill is a Managing Director at PIMCO and commonly known as a leading expert on the fixed income market. Today Bill published a report titled Run Turkey, Run . Basically a slam on the QE2 plans and the end of the 30 year bull market in bonds (finally!). Not to mention a slam on the 2 party political system that leaves the American people high and dry. The bondholders remaining after QE2 will be like the turkey waiting on Thanksgiving Day. They might receive some immediate fat gains from bond yields being pushed lower for the last time, but ultimately they'll be served up on the platter of rates that can't go lower.  Rates ultimately will begin creeping higher. Bill basically outlines why a thesis of investing in companies that prosper abroad has been very rewarding over the last 10 years. The political system in the US has become as corrupt as ever and void of a fiduciary responsibility to the American people. He suggests...