From The Big Picture:
Yesterday’s testimony by Fed chair Ben Bernanke makes it clear that QE is here to stay for the foreseeable future. Rather than tilt at windmills, you need to accept this fact, and adjust accordingly.
Here are a few of the things that you should be doing in response to zero interest rate policy:
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More on the Federal Reserve:
"QE for dummies": An explanation of the Fed's money-printing program anyone can understand
Must-read analysis reveals the real reason your wages have not kept up with inflation
Warning: Even the Federal Reserve's own governors are warning its policies could be creating a disaster
||Refinance your home, locking in a 30 year fixed rate (if you can afford a 15 year fixed, do that). This is a no-brainer and the best way to take advantage of zero rates for most families.
||Shorten the duration of your bond holdings. Rates will go up eventually, so those 10 year durations and longer should be 7 years max.
||Buy or lease a new car (Ben wants you to) assuming you can afford to.
||Evaluate your risk assets: Since the March 2009 lows, stocks are up over 100%. If you...