Summary:
Investors really couldn't handle the truth, an apt line I couldn't come up with myself, so I purloined it from Michael Santoli in the latest Barron's, to describe the market's behavior. Forecasts of slower growth are highlighted at the expense of data showing higher inflation. So, the market is unprepared for the possibility that interest rates may need to go higher. A defensive posture in the market remains most appropriate.
Investors really couldn't handle the truth, an apt line I couldn't come up with myself, so I purloined it from Michael Santoli in the latest Barron's, to describe the market's behavior. Forecasts of slower growth are highlighted at the expense of data showing higher inflation. So, the market is unprepared for the possibility that interest rates may need to go higher. A defensive posture in the market remains most appropriate.
Complaints that Fed Chairman Bernanke is unclear are better interpreted as investors do not wish to hear his message. This Fed Chairman speaks quite directly. Without committing to doing so, he hoped that the data might permit a pause in the sequence of rate hikes. When the markets tried to make that statement a fair accompli, Bernanke provided more clarity by telling Maria Bartiromo of CNBC at.....
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