Ahead of Fed Decision on Possible Stimulus, Investors Hold Their Ground

The stock market showed little change on Wednesday, as investors turned cautious before a Federal Reserve decision on another round of monetary stimulus to bolster the economy.

“The market is somewhat nervous ahead of tomorrow’s Fed decision, and rightfully so,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York, who said he believed that the Fed would not begin another round of stimulus until after November’s presidential election.

“We could be setting ourselves up here for a quick 2 to 4 percent correction,” he said. 

“It’s a little scary for me when you think about what we are going to be faced with next year,” said Catherine Avery, president of Catherine Avery Investment Management in New Canaan, Conn. “In addition to the fiscal cliff, we do have a very slow rate of G.D.P. growth. It’s very possible that the S.& P. earnings that analysts are predicting for next year are just way too high.”  

http://www.nytimes.com/2012/09/13/business/daily-stock-market-activity.html?_r=1&ref=global