Quote:
Originally Posted by Villages PL
The market went up after they reduced it to 75 billion.
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That's because some $ amount of tapering was already factored into the Marketplace. Going from $85 bil to $75 bil. a month finally got the ball rolling. It was a small ball, and that's why the market digested it comfortably. Going to $65 bil. the first increment would have been a harder swallow!
That said, I heard Bob Pisani (on CNBC) say today he thinks the Fed. will end up actually increasing QE sometime in 2014. If that happens, look out below (in my opinion). That would mean we're addicted to QE; that we can't live without it.
Of course, Pisani is just one voice (he also predicted a 10% market correction sometime during 2014).
On the other hand, Jeremy Siegel said today he sees the Dow "ending" 2014 at 18,000. It ended today (12/31/13) at 16,575. That would be an 8.6% increase for 2014. He, too, said there would be a correction along the way.
One thing is for certain: 2014 won't be linear...several (many?) Ups and Downs along the way. Buckle in.
But first things first...let's see how January performs.
Gene