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No Fed Taper Until New Year Means New Highs: Fahmy

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The world of sports is filled with lists of historic mishaps and game-blowing failures, made all the more painful by the fact that they happened in full view of a cringing public. The '04 Yankees. Greg Norman's collapse at The Masters in 1996. Bill Buckner's missed grounder. The Cleveland Browns fumble in 1988. The list is as long as it is inconclusive, but serves as a reminder that even the best, highest paid players in the world, sometimes simply screw up.

But if you ask Joe Fahmy, managing director of Zor Capital, if Federal Reserve chairman Ben Bernanke might soon be lumped in amongst those athletic travails, and he'll tell you, no way, not happening.

"I don't think he's going to come this far, and pull the plug and cause a mess for the next Fed chairman," Fahmy says in the attached video. "He may still leave a mess but, I say, he's at least going to go out on a high note."

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Of course he is referring to so-called tapering, and the present state of expectations that suggest Bernanke's Fed may begin to rein in its $85 billion per month asset purchase program at its meeting on September 18th.

Part of his conviction comes from the fact that the data just isn't there, a reference to the fact that the Fed's 6.5% unemployment target has yet to be hit. So not only does Fahmy think September is off the table, but he says November and December are too.

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"I don't think they are even going to taper at all until (Bernanke) is done," he says. "I don't even think you'll see anything in November or December either," he predicts, stressing again that Bernanke is too smart, and too invested to blow it on his final at-bat so to speak.

If he's right, Fahmy is predicting a positive reaction from stock investors who will continue to benefit from the Fed's policy of artificially lowering interest rates.

"So I say no taper, and I think the market goes to new highs by the end of the year," he says, stressing that his call is a also based on "the price action" of leading stocks, which he says are performing well.

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