What Investors Were Researching in June
Interest in dividend-paying stocks and bonds remained high as the market eyed the Fed.
Stocks broke their winning streak as Treasury-bond yields rose in June, with all eyes focusing on the Federal Reserve. The broad-based Morningstar US Market Index fell 1.32% during the month, though the index is still up 2.7% for the second quarter.
Worries about the Fed's exit from its extraordinary monetary policy spread in June. The fears started to take root in May after the central bank began hinting that it was considering tapering its purchases of mortgage-backed securities. The Federal Open Market Committee's June policy statement and chairman Ben Bernanke's press conference did little to soothe the market. The FOMC raised its outlook for the economy, and Bernanke said that Fed officials could take their foot off the accelerator as soon as the end of the year. Although several officials tried to downplay that there had been any major changes to policy, it still spooked the market.
Jeremy Glaser has a position in the following securities mentioned above: MSFT. Find out about Morningstar’s editorial policies.