Stock Market Update. March 19th, 2014. InvestWithAlex.com

An interesting day with the Dow Jones down -114 points (-0.7%) and the Nasdaq down -26 points (-0.6%).

Today was a perfect illustration why it’s good for your health not to pay attention to the market action on an hourly basis. What’s all the fuss about? Who cares and it doesn’t matter should be an appropriate answer……but since you asked. Apparently, the combination of words coming out of Janet Yellen’s mouth set off “algos” that went ahead and slammed the market.

What did she say? Nothing new. Just the fact that the FED MIGHT have been a little “over-optimistic”, that they MIGHT shorten the time frame on taper and that they MIGHT tighten sooner. A lot of irrelevant “MIGHT”, but the market thought otherwise. Market action over the next few days is critical to see if her comments had any lasting impact. One thing is certain, you won’t see Janet Yellen speaking her mind again. She is surely to be coached on how to say “a lot” without saying “anything”.

Yet, as I have warned you here many times before, most market participants shouldn’t worry about the FED tightening too much. The Bear Market of 2014-2017 is nearly here. When it starts and the US Economy slips back into a recessionary mode, all talk of “tightening” by the FED will go out the window. Whether that’s good or bad is for you to decide. If you would be interested in knowing exactly when the bear market of 2014-2017 will start (to the day) and its internal composition, please Click Here.

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!