Thursday, February 21, 2013

The big news yesterday that seemed to cause the market some concern was that the minutes of the Fed meeting revealed a lack of unanimity in the current path of supporting the bond market with 85 billion per month in purchases.

While I agree with Gartmann that the purchase program is helping to underpin the stock market, I do not agree that they have changed course. It should not be surprising that there are conflicting opinions at the Federal Reserve.  I do not believe that the program will end sooner than we thought and certainly not abruptly.

My thesis is that there will be pullbacks in equities but they will be shallow and represent an opportunity to buy.  I am buying some in here now.  Nothing has changed.

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