How did the U.S. dollar fare? Not so well. Immediately following the Federal Reserve announcement, the U.S. dollar shed 1.5%, breaking through its support level of 80.5.
What does Wednesday’s announcement from the Federal Reserve mean for investors? With QE III going strong, investors can look at riding the momentum; right now, that means that gold and silver stocks and exchange-traded funds (ETFs) are back in play, like the iShares Silver Trust (NYSEARCA:SLV).
Investors who think the U.S. dollar will continue to perform poorly might want to look at ETFs that short the U.S. dollar, like the PowerShares DB US Dollar Index Bearish (NYSEARCA:UDN).
With a pullback in quantitative easing off the table for the foreseeable future, the markets are, in spite of weak economic data, wide open for a prolonged run.
This article is brought to you courtesy of John Whitefoot from the Daily Gains Letter.