NEW YORK--()--Wall Street Webcasting presents exclusive video of Rich Gordon, the highly regarded Fixed Income Market Strategist of Wells Fargo Securities (NYSE: WFC). This week, Gordon focuses on the Fed and their plans for Operation Twist and QE4.
“replacing Operation Twist with 25 billion in long term duration treasury purchases might be enough to maintain the status quo.”
Within the next week, the Fed will be meeting to discuss, and likely replace, Operation Twist with another program that is similar in size. QE4 will also be going into affect soon and Gordon expresses concern over a comment made by an individual in the Fed. This individual said that he thought “replacing Operation Twist with 25 billion in long term duration treasury purchases might be enough to maintain the status quo.” Gordon believes the Fed would need to purchase 10 billion more than that. There is also a wide range of possibilities for the mix of potential asset purchases for QE4, but Gordon thinks the likely outcome will be that the Fed takes out the same amount of duration or slightly more than Operation Twist. Finally, investors should keep in mind that it is possible for some additional MBS to be put into the mix of asset purchases. The current stimulus, directed at the MBS market, is about 45 billion dollars per month with no end date.
To hear why gold will be worth more if the Fed continues with its current plan, as well as, Gordon’s tips for investors, tune into Wells Fargo Securities’ newest video.
Please visit the following link to view the video: