CSMonitor: FRIDAY, SEP. 13, 2012: “US stocks rallied after news that the Federal Reserve will spend $40 billion a month to buy mortgage securities. Nearly four stocks rose for every one falling, and the Dow closed at its highest level since December 2007.
“David Abuaf, chief investment officer at Hefty Wealth Partners, said he expects investors to keep shifting from safer assets like government bonds to stocks. That could push stock prices higher and start a cycle of increased wealth and spending. “People will feel more confident, consumers will buy more goods, and GDP growth will increase,” he said, referring to the gross domestic product, or economic output. The stock market had already enjoyed a summer rally, in part because investors were betting on more Fed action. The Dow has climbed more than 1,100 points since the start of June.”