Is this the end of easy money?

In this Investor Beat: what are the implications if the Fed ends its quantitative easing policy? Also, four stocks making big moves.

By Motley Fool Investor Beat Apr 10, 2013 6:23PM
Notes from the Federal Reserve’s recent meeting revealed the Fed is considering ending its quantitative easing policy this summer. 

Which stocks would benefit from the end of the easy money policies?  Which stocks would get hurt?   In our lead story on Investor Beat, our analysts discuss the implications for investors.
In our second segment, our analysts discuss four stocks making big moves.  CarMax (KMX) hits an all-time high after fourth-quarter profits rise 13%.  PriceSmart (PSMT) rises after the retailer reports better-than-expected profits.  Fastenal (FAST) falls after the company misses on revenue expectations.  And 3D Systems (DDD) racks up big gains after one of its competitors gets an upgrade.
 
And in our final segment, our analysts explain why they’re watching JP Morgan (JPM) and Facebook (FB).

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16Comments
Apr 10, 2013 7:13PM
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If the Fed ends its QE policy, the whole market is doomed. That´s because it has been the sole reason why it´s soaring to a bubble. It´s basically robbing savers to transfer their money to big banks. 
Apr 10, 2013 7:43PM
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Based on target points, I don't think QE ends this summer, at least not without another round set up for the fall/winter.  The target UE rate is 6.5% - a long way from here.  If anything, the latest jobs number and GDP data indicates continuation of QE, not cessation.  And according to official data, we aren't close to target inflation points.  Have no fear, Wall Street, QE is here to stay in one form or another.  After QE1 ended, we slid back just enough to warrant QE2.  After QE2 ended, we slid back enough to justify QE3.  QE3 - the same outcome.  And now we're in the middle of the 4th round.  QE isn't going anywhere, because none of the systemic problems have been addressed, let alone solved.  Keep the sheep happy and let the rally continue.  And when you wake up and see trillions of dollars all hitting the system in one big tidal wave, don't act like you don't know where they came from, and don't say you weren't warned.

When this thing blew up, we were all in the same boat, about 200 yards from the beach, when it sprang a big leak.  Instead of letting us jump out and swim for it, we were ordered to stay in the vessel and issued teaspoons (QE1) with the order to start bailing.  Since the initial leak, Bernanke has also issued us shot glasses (QE2), measuring cups (QE3) and pitchers (QE4) and told us to keep bailing..  We're still bailing as fast as we can, but it isn't fast enough, and water is still pouring in.  As all this has been happening, we've been adrift, and now we're 2 miles offshore.  If only we'd been allowed to jump out when we had the chance, and swim the couple of hundred yards to shore.  The vast majority of us would have made it and we'd be in better shape because of it.  As it stands now, there's no land in sight, the boat is full of holes and the sharks are circling.

Apr 10, 2013 7:51PM
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This is going to be like riding a roller coaster that goes straight up then straight down.When are we going to get the change we were promised over four years ago.High unemployment,trillions in debt,war,wall street crooks,looks the same to me.
Apr 10, 2013 7:29PM
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Luke, I am neither a Republican nor a Democrat, I think they both stink. I am bearish because this current run on equities is due to Massive Global Money Printing. Not knocking anyone that has made a ton off the lows, good for them. However, things are not really adding up. Massive Debt on both a consumer and government level. Everyone buying their own crap. It's bogus. If you can profit from it do so. It will end badly.
Apr 11, 2013 9:34AM
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I feel sorry for the next President (Democrat or Republican).  They will be stuck taking the blame for high inflation and increasing unemployment, plus they will have to explain the ever increasing health care tax.  They will owe it all to the poor planning of Obama.   

Anyone who runs for President in 2016 is crazy. 

Apr 11, 2013 8:08AM
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i cant wait until the house of cards eventually come down, and they will, so we can get on with WW3 and get out of this world.
Apr 11, 2013 7:54AM
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The Act of Congress That Congress Doesn't Want To Act On.

With a begrudged semblance of mandatory background checks beating naysayers to death on both sides of the aisle (93% of Americans demand mandatory background checks), the next heated debate is a double edged sword like no other. Congress must stop Bernanke and his stimuli. Some of the preliminary articles are quite interesting... Bernanke swore he would not monetize, but few if any deny that he has done anything but. That's a felony offense. He "claims" his stimuli helped economies, but everyone can plainly see that all it did was to crank out millionaires. Not one penny ever reached Main Street. Many say that big businesses are cash-rich and fully capable of survival beyond stimuli. Really? Almost 100% of organized business platforms don't do business, they do paper pushing and administration. Almost 100% have lawyers, bookkeepers, administrators and other pariah in key positions but absolutely no competent capable veterans of when we did WORK in our entities. There is also a huge to massive gap between these deadweighted behemoths and small businesses that might be bolstered to compete with them. In short... damned if we do, damned if we don't. Congress is certainly in a lose-lose-lose role. It MUST end Ben. It MUST collapse white collar corruption and it MUST destroy organized financial tyranny by obliterating Wall Street. What does one do when the only other option is Reality? You jump... or you snap out of your Kool Aid coma and put your money back into the economy and Main Street where it never should have left in the first place. What did we learn? It's better to have vacant office suites than destitute families on impoverished streets. You know, it's kind of like a legitimate Final Exam for the social networked alumni psychopath crowd... you bought a pigskin diploma or two or three, but can you wake up everyday starting from zero and sustain yourself by your own unsalaried efforts? The odds now are grossly against it because you don't actually have a legitimate work ethic. The facts are obvious-- more stimuli destroys everything. Stopping it starts the REAL Depression most of us know was always there. The Dollar and all the complexity attached to it, must crash and the new currency has to be very genuine-- like a Dollar given in exchange for actual work. Work- being defined as anything other than complex financiering designed by fools who don't work, they scheme. We must go down a road no one will enjoy. The public already involuntarily gave all they have in every possible way. The turnips need to put it up without contest and write checks beyond when it hurts. I prefer it without war but that all depends on Congress.

Apr 11, 2013 10:02AM
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the same way the "tide rises all boats", an end to quantitative easing will also drop the entire bay of "boats". 
Apr 10, 2013 7:14PM
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We`re setting records every day.These are the good old days.We`re making a ton

of money.Just watch these sour puss bears to try to find fault.Valuations are good, companies are

sitting on a record amount of money.Do you notice the negative bears are Republicans?

They missed the bull market and now they`re bitter and nasty.Just stay in CD`s.

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