After falling nearly a full percentage point in early morning trading, the Dow
Why the change of heart, you ask? The Federal Reserve announced that it expects to be holding short-term interest rates near zero through 2014.
To be frank, it's a bit silly -- though not surprising -- that the market rallied on this news. No one expects us to be back near full employment by that time, and with the economy in a liquidity trap, core inflation won't be up, either. That means that the conditions requiring low interest rates will still be in place two years from now.
Cyclical Dow components like Caterpillar
Mortgage REITs, led by Chimera
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