Fed's Stein puts focus on September as time to assess QE3

This is yet another clear signal to the market, that the Fed is considering QE tapering as early as September. This means there will be volatility and there could be corrections , as the unwinding of QE works through its way. But, this unwind will be a uncharted territory. Therefore, increased volatilities and downside risks remain.

The need for and the addiction to QE suggests a lack of vision in the investment community. Have they faked the last several decades so badly that they now lack all understanding of what value is or how to make something of value? I think so. It appears to me that they have lost touch with reality and the art of faking it has replaced the knowledge of doing something real. I guess if you brainwash the populace to believe that former drunken frat boys are the best managers, you get what you deserve eventually. Hmmmm, I guess we need to up the salaries and golden parachutes of these guys before they run us completely into the ground.

I think that the tapering is already priced in.
The pundits will attribute to it any downside movement of the markets, but the fact is that we are probably due for a correction, and therefore, the timing chosen to taper was right.
Even on down days like today, you still see more then 75 of all stocks making new highs. The bull market might be at the end of its run, but we are far from a bear market (as now).

Yes, we are so addicted that we almost hope for bad economical news in the hope that the FED will postpone the tapering: we are really like patients who do not want to heal because they don’t want to stop the medication.

Money does not automatically increase in value. But that is what interest rates pretend to do. As long as the people of the world do not understand this basic concept and do not understand that they have to let go of their selfishness to grow then they can only hope for war.