Saturday, May 11, 2013

Fed Maps Exit From Stimulus (WSJ)

Well, soon after we posted our thoughts about the overall equity market (S&P 500), Mr. Hilsenrath, 'the market savior' journalist of The Wall Street Journal, published an article discussing the Fed's QE potential exit strategy.  Hilsenrath has been a savior for the equity market the last couple of years, as pretty much every time there was bad economic news, he would get 'hints' from the Fed that further QE would be pushed to up the stock market, hopefully increasing everyone's wealth via the good 'ol 'trickle down' economics.  Well, this time, his article is about the exit strategy, and surprisingly, he published it on a Saturday!  Remember that we did touch on the Fed approaching an exit strategy and how that might take out the 'QE premium' that is currently priced in the equity market.  Enjoy the article (link included).

"Federal Reserve officials have mapped out a strategy for winding down an unprecedented $85 billion-a-month bond-buying program meant to spur the economy—an effort to preserve flexibility and manage highly unpredictable market expectations. ... " - Fed Maps Exit From Stimulus (WSJ)

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