Bob Elliott: Fed Easing Will Favor Stocks Over Bonds

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Bob Elliott, co-founder and CEO of Unlimited Funds, discusses the implications of the Federal Reserve's commitment to monetary easing. He believes this will benefit stocks over bonds and create a more balanced market.

Elliott says, “Coming out of the Fed meeting last week, we're clearly seeing an environment where the Fed is committing to delivering significant monetary easing, even accommodative policy, despite the fact that asset prices are near highs and the economy is doing all right. That should be positive for growth ahead relative to some of the concerns about a downturn that are being priced into the bond market. And as a result, should probably favor stocks relative to bonds in the near future.

Uh despite the fact that asset prices are near highs and the economy is doing all right, that should be uh positive for growth ahead relative to some of the concerns about a downturn that are being priced into the bond market.Hey, Bob, great to chat with you. So those areas of the market uh that have been uh underperformers relative to me, uh growth companies are likely to see some benefit from an easing of financial conditions.

We're already seeing it to some extent, uh in seeing wages start to pop up a little bit uh by very timely measures. TALLAHASSEE, Fla. — Some Florida school districts are rolling back a more comprehensive approach to sex education in favor of abstinence-focused lessons under pressure from state officials who have labeled certain instruction on contraception, anatomy and consent as inappropriate for students.

 

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