(Cleveland) – Financial markets settled down friday after the turbulence caused by U.S. Federal Reserve Chairman Ben Bernanke's admission that the central bank may be done with its monetary stimulus next year.
Kevin Myeroff of NCA Financial Planners in Cleveland says investors have no reason to panic, stock values remain high dispite the recent selloff.
Myeroff tells Newsradio WTAM 1100 that investors should just ride out the storm, because the economy is continuing to improve.
On Wednesday, Bernanke said the Fed's bond purchases would likely slow down this year and end in 2014. That admission prompted widespread concerns among investors, who have grown used to the central bank's money-creation policies over the past few years.
The new money the Fed has created through its bond-buying program over nearly five years has been designed to shore up the U.S. economy.
The prospect that the policy will be unwound sooner than many investors thought prompted big moves late Wednesday and Thursday despite U.S. economic data pointing to a solid recovery. Stocks, government bonds, in particular U.S. treasuries, got hammered, while the dollar surged.
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