Fed Taper Not Likely in the Cards for 2013
As the economy remains soft and uncertain, Fed tapering is now more likely a 2014 event, writes Morningstar's Bob Johnson.
After a lot of drama, the budget issues that caused the government shutdown and the debt limit crisis were pushed off until the New Year this week. Not settled--just saved for a later date. However, the market had assumed that for most of the week.
Instead, the real market movers this week were Google (GOOG) earnings, the Fed's dovish speeches, and improved GDP news from China. Overall, the S&P 500 was up 2.4% on the week, making a new recovery high, with the Dow doing somewhat worse because of poor earnings from IBM (IBM).
Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.