People who listen to jawbone are mindless sheep. I've been claiming for months that the FED would not Taper in September. Months ago I warned everyone that the Media misquoted Ben. The Media picked up the idea that Ben said he would start tapering in Sept. He never said that; however the lie was touted so many times it became accepted as truth. Surprised media and sheep blamed the Fed for being misled, but it was the Media and certain groups who prospered the lie. I admit Ben and company didn't correct the misconception, in fact they jawboned it. Recently Ben explained the Fed's rational for not tapering. He was very clear ... taper is data specific and actual taper may not occur even if the data warranted so. If improvement is shown in the data, that would cause the Fed to consider Taper. That does not mean actually tapering. The truth is the Fed can't taper for a long time. The data would have to be very compelling. There is no way the FED will make a move if there is any chance it would hurt a recovery. The bond market, stock market and real estate market would all have to be strong enough to withstand a taper. People we are not remotely close. The Fed will not taper heading into Christmas. The Fed will not taper until inflation picks up dramatically. The purpose of the jawbone is to keep enthusiasm in check. The Fed doesn't want an quick overheated stock or bond market. They want to prevent a crash. IMO taper will not occur until mid 2014 the earliest. Gold has given back way to much. Gold stocks erased all non-taper gains. The market has taken down gold as if the Fed decided to taper by $10 billion in Sept. Selling gold because of a jawbone of a possible Oct taper was mindless.
I will buy GLD and GDX today because China is not going to have a hard landing.
I don't know what will happen with the debt ceiling and possible government shut down. I think it will all work out, but if it doesn't you want to be in GLD.