Those of you breathlessly waiting for the FOMC's statement this afternoon need to chill; the Fed isn't going to unleash any game changing stimulus. There simply isn't enough negative data in the U.S. to warrant another round of money injection. Our problems aren't a function of high rates but a global slowdown and inept lawmakers. Bernanke can't touch the former and has been scolding Congress for ages, and has nothing to show for it.
Doug Cote, chief market strategist at ING Investment Management, has an even better reason to ignore all things related to the dismal science. The economy is gloomy but the equity markets are doing just fine, thank you.
"Investors are missing a bull market," says Cote in the attached video. "Right now through July we're having the best year since 2003 and the second best year since 1998 so investors need to get into the market regardless of what the Fed does."
At most Cote thinks the Fed gives the market "a nod" via a one-year extension of the plan to keep the Fed fund rates near zero through 2015 or even buying mortgage-backed securities. In light of the looming Fiscal Cliff and expiring tax cuts, markets will move on from a Fed focus in short order.Read More »from Nevermind the Fed, Stocks Are Going Higher Says Cote