Entries by Tom 2

Money is Rotating out of Bonds, Here’s One Group of Stocks that Should Benefit.

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Bernanke, and other Fed President’s, have pounded home the message lately that Fed “tapering” of QE is not tightening of policy, and that message has led to a “counter trend rally” in bond prices, and a decline in bond yields. But while they are correct, the market isn’t dumb: Everyone knows that once “tapering” of QE starts, it will eventually lead to tighter monetary policy…

Missed Profiting from the Bond Market Selloff? Here’s Your Chance to Get In.

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The key here remains that the equity market continues to get more comfortable with the reality of “tapering.” Keep in mind that the market broke from its highs almost two months ago on the Hilsenrath WSJ article that said the Fed was game planning its exit, so markets have been adjusting to this new Fed reality, sometimes violently, for 2 plus months.

FOMC Minutes/Bernanke Preview

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The Fed remains critical to the market, so today’s Fed events today will be front-and-center like they always are. But, whatever the immediate “reaction” to the FOMC minutes and Bernanke, keep in mind that the very broad consensus is that the Fed will begin “tapering” at the September meeting. That is the baseline expectation.