Equity markets will likely be quiet for the next 24 hours or so
as the world waits on the edge of its trading seats for the FOMC to
do or say something on Wednesday.
But should anyone really care? Will a decision on whether or not to
taper another $10 billion in LSAP bond-buying really make a
difference to either equity or bond markets?
The 10-year yield has already fallen back to 2.75% on the relief
rally in bonds and a general safe-haven bid for Treasuries. And the
30-year also fell 30 basis points from 3.97 to 3.67 this month.
But do equity markets "need" slower taper to prevent a correction?
Maybe Emerging Markets do, but that is another issue.
I heard some suggest yesterday that the recent sell-off in stocks
is institutions "testing" and baiting the new Fed chief Yellen to
see how dovish she really is, as if equities need her reassurances
(again and again) that "extraordinary accomodation" means what it
So does tomorrow's taper action/inaction and FOMC statement matter
to markets and should it? I'll share my view after I hear from you,
but you can probably already tell which way I'm leaning.
ISHARS-R 2000 (IWM): ETF Research Reports
NASDAQ-100 SHRS (QQQ): ETF Research Reports
SPDR-SP 500 TR (SPY): ETF Research Reports
ISHARS-20+YTB (TLT): ETF Research Reports
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