Taper Talk – Believe It Or Not

Doesn’t it always seem to go like this.

Just when you feel you’ve got things ironed out, and have put some larger plans in motion – sure enough (it never fails) something pops up that starts to get you thinking again – wait a minute….have I got this right?”

The Fed’s “taper talks” have certainly been working their magic in that regard, as the Internet now buzzes with new analysis on the U.S Dollar, fancy charts with arrow pointing up , up , up and suddenly (practically overnight) the U.S data is “all positive” and most certainly the Fed will begin “making its exit” in September. Done deal. As simple as that.

Ok – well…….what does that mean to the average investor? ¬†Wasn’t it just last week that “more QE” is what the street was looking for? This being a “fed sponsored rally” does that mean the rally is ending? Or is “tapering” a good thing for markets?

The orchestration is truly brilliant in its design, and if you stopped to ask 10 different people on the street what it actually means to them – I’m sure the answers would be a resounding “I have no frickin idea” right across the board. Keep people confused. Keep things cloudy, and let the market do what it’s designed to do.

At this point it’s really a matter of “if you actually believe the talk or not” and how you would then go about positioning yourself. I for one am quite confident that it’s actually the opposite which is soon to take place – and the Fed will be introducing additional measures to keep interest rates from rising, and to keep the dollar tamed.

“QE 5” I’m calling it.

Either way you cut it – “Taper talk” is the current riddle to decode.

I wonder what’s next?