It appears the government will continue printing $, keeping interest rates very low. I believe their fear is the effect easing will have on the stock market (which is grossly overpriced) and inflation.
Inflation you ask. Yes inflation. The government sites that our 2013 inflation rate was under 2%. Please keep in mind their calculations no longer include food and fuel. That's right. These are not figured into the inflation rate.
Have your grocery bills increase over the last 12 months? I will admit the price we pay at the gas pump is lower now than it was last spring. Not much less but still lower.
I'm starting to believe we are on the verge of some real changes. The stock market will correct. I'm hoping it's just a correction and not a collapse. Interest rates will climb. Of course the rates will increase for borrowing before rates paid to our bank passbook account or our money market increase.
What to do? Shortest maturities for your bond investments and possibly take some gains from your equity investments? Timing? Always an issue. Great questions. Sometimes I feel like we are on a ride at the fair with the track being laid just ahead of our car. No idea where the next turn or drop will be.
'til later
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