And the Pundits STILL Don't "get" Bernanke
It amazes me how the pundits have constantly misread Bernanke. So today when the Fed report came out everyone was shocked that there was no tapering. Well almost everyone since I said he wouldn't:
http://caps.fool.com/Blogs/qe-why-the-fed-failed/846980, comment 2. Comments 4,6,9 addressed the whys.
After the last press conference I could no longer listen to Bloomberg radio 10am-noon, 12:30pm-2pm. I so wish they would get rid of Vonnie Quinn so I don't have to keep switching radio stations. Every day every guest she would talk about "will the Fed taper?" In one minute I counted the word taper used TEN times. I got tired of shouting at the radio and stopped listening to that show.
With that rant aside, Yield is still King and there is no reason to hide from those high yielders.
I shake my head when I hear the pundits bemoan that we are only in a 2% Gdp recovery while we should be in a 4% one. And we would be if Bernanke got help from the FISCAL side. And if it wasn't for Bernanke we would be in recession. This is why I don't understand the delay in appointing Yellen as his successor. Market certainly wants it. I don't understand why President Obama doesn't since I doubt he would have won re-election if it wasn't for Fed actions.
The fact that we made a higher high today supports this bull market. And the fact that the FED is still keeping interest rates low means that yield plays still work for me.
Now we are setting up for a correction in October because it seems the House Republicans are hell bent on "war."