It is a sign of the times that investors view improving economic fundamentals with trepidation.
Recent US data prints on GDP and employment, which came out ahead of consensus, caused widespread soul-searching whether these could trigger the dreaded ‘taper.’
By the same token, Janet Yellen’s statements before the Senate Banking Committee that the economy had not recovered enough to justify a rollback of QE led to fresh gains on Wall Street. At last week’s close the DJIA was perched at 15961.70, its 38th new, all-time high.
The Fed’s dollar printfest
Stocks are obviously bobbing along on a flood of Fed-induced liquidity and any threat of the spigot being turned off affects sentiment negatively. A WSJ Setup a free account to get access to this article (no credit card required).Login required to continue reading.
