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

Click here to receive free and immediate email alerts of the latest forecasts.