| Subject: | The Taper Talk Has Performed Brilliantly |
|---|---|
| Date: | Sat, 7 Dec 2013 09:57:20 -0800 |
| From: | Jas Jain |
The Taper Talk Has Performed Brilliantly
The decisions of the FOMC meetings are lot less important than all the chatter that its members, especially speeches by the Chairman, engage in all the time; hence the name Foul Open Mouth Committee. The top two Fed officials have made it known to all that they want to push people into risky assets and particularly into stocks. But, until this year dopes were putting money into bond funds and withdrawing from stock funds. Why? US Treasury bonds had great 2011 and 2012 and that prompted dopes to pure money into bond funds and not taking the risk in stocks. Wall Street smelled the rat and the message was discreetly communicated to the Fed Chairman. That is why only those who could be trusted to be discreet about Wall Street's messages are chosen to head the Fed. A crystal clear message was sent: Bonds must go down and down good to get the dopes out of the bond funds and into the stock funds.
The Taper Talk Begins
Ben got the message and began his taper talk. Bonds took a nosedive and Scams, after some hesitation, took off. The rest, as they say, is history. In just seven months Scams have out-performed long-term US Treasury bonds by 30%. Dopes are moving into Scams driven by the herd mentality, just as Wall Street had expected. Uncle Ben will get his Thank You notes after he retires. The cozy relationship would continue under Aunt Jenny. Who says that talk is cheap?! Expect a lot of chatter from Aunt Jenny since she has been in-charge of the Fed's communications policy. It is always nice to have an uncle or an aunt in very powerful positions.
Buy On the Rumor of Taper and Sell on the News?
I think that we shall find this out the next few months.
Jas
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