No Taper Till 2016: General Market issues prevail, budget and debt ceiling VOTE
The cost of "tapering" has already been sucked out of high yield to the tune of 40%. High yield doesn't have the sentiment going with it, hence the deflated valuation, but most MREITS have taken precautions for tapering so far into the future crystal balls are cracked. The biggest challenge for a Congress with 6% approval ratings, is not sacrificing America for agenda this January. GLWT.
But Yellen is "here" to soften even Bernookie's stance. Bernookie will not be the grinch this XMAS meeting, his last, and soil his legacy--as a result the market will explode even if only for a week or two. Yellen won't do anything until she has three months under her bonnet, March, and then will lower the unemployment expectation to a more historically supportable 5.5%, which is where we had cardiac arrest if numbers were that "high" back in the fifties and sixties.
The idea is to keep the party going, and not give seniors a gift of 4% on their CD's (all the while deflating the dollar by 6% a year). Here's to those who rely on savings having to do it the old fashioned way, not be fooled by currency valuation manipulations, but actually taking the money off principal.
Yeah yeah, end of year rebalancing (like adding FB mandatorily because it is now in the S and P 500) and "profit taking" are the usual suspects, but I notice you don't even take a stab at a reason, so you've said nothing