Why the stock market euphoria? Will it Continue?

It’s (still) the Fed! Once again (September), the stock market showed how much it cares about what the Fed says about its policy. After becoming absolutely convinced, without good reason, that Chairman Bernanke had promised to begin “tapering” away from the Fed’s trillion-dollar-a-year, money-printing program, in mid-September, market players were incensed when the Fed changed nothing. The players pouted. They were forced to reverse their trading bets, which took the stock market from its all-time high into a(nother) 4% funk that lasted for three weeks, into early October. (The previous market tantrum-reaction to Bernanke’s mild taper-talk was in June, as […] Read more »