ING GROUP N V

• Two Tragic Reasons Why Investors Love the Fed

  By Evan Buck - September 14, 2012 | Tickers: AMZN, AAPL, FB, IND, ICE

  After the Federal Reserve recently announced that it would start another round of stimulus spending to the tune of $40 billion a month, the Dow Jones Industrial Average (DJINDICES: ^DJI) rocketed 200 plus points on Thursday, 9/13/2012, while the S&P 500 Index shot up 23 points. It’s clear that Wall Street investors are happy about this news, even as the Middle East is going up in flames.  This event and other similar ones like it beg the question: why do investors apparently love the Fed?  The exhaustive answer is not simple, but there are two overarching concepts that play a crucial role in shaping investor sentiments on the Fed’s activities.