Delay in the Fed's Taper Means QE3 Will Continue to Power Stocks Higher |
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October 27, 2013 |
October 2013 Bond Updates
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Don't look for Ben Bernanke to start cutting back on bond purchases before he leaves office in early 2014. And don't expect Bernanke's successor, Janet Yellen to begin reducing the dollar level of QE until the statistics support the notion of a stronger economy. Expect stock prices to be influenced by the monthly Fed buying of Treasuries and mortgage-backed securities and not to collapse when minor reductions in QE3 of $5 billion to $10 billion in purchases do begin. There will be no dramatic event to drive interest rates higher and stock prices lower.
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View more at: http://www.forbes.com/sites/robertlenzner/2013/10/26/the-feds-taper-will-not-shut-down-stock-advances/
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