Philip McBride Johnson on why good news is bad news in the current market.
As a 75-year-old with a semi-literate degree in financial
markets, I have never seen anything quite like it. For most of
my adult life, good economic news meant strong stock and bond
markets. Today, the opposite seems true.
The culprit appears to be the Federal Reserve Board's
"quantitative easing" policy that is broadly credited with
saving the American economy (well, at least Wall Street) after
the 2008 Great Recession.
It was good news at the time but, now that FRB Chairman Ben
Bernanke says it may "taper" (whatever that means), good
economic news has become hazardous to our financial health.
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