Bernanke’s New Lip-Service: Don’t Believe It, Bond Markets Aren’t! – Seeking Alpha 07-12-13

Salient to Investors:

Jeffrey Fischer writes:

  • Bernanke has been strategically testing the markets to gauge investors’ reactions to tapering – not the first time the Fed has given investors lip-service, and won’t be the last.
  • Economic Indicators have improved. The Fed is not concerned much with a decline in equity markets but should be very worried by the sharp rise in T-yields of nearly 1 percent since the beginning of May.
  • The bond and currency markets don’t fully buy Bernanke’s 180-degree reversal. A continued rise in equities but no relief in Treasury yields will make the Fed return to serious discussions about tapering.
  • Reduce or hedge your exposure to stocks.

Read the full article at  http://seekingalpha.com/article/1546222-bernanke-s-new-lip-service-don-t-believe-it-bond-markets-aren-t?source=email_macro_view&ifp=0

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