Janet Yellen became one of the world’s most powerful players when President Barack Obama appointed her Chair of the U.S. Federal Reserve Board. What expectations do we have? She carries more financial sector influence than any other civil servant in the world. Questions abound over Fed policy, financial stability, Mega-bank and financial institution regulation, asset bubble control and relations with Congress.
You can ride the tapering groupthink higher. Groupthink can produce mindless selling triggered by emotional and knee jerk reactions to tapering talk. Made without any critical thinking, that behavior can produce stock and bond market turmoil. Any selloff can work in your favor. Times of turmoil and volatility produce excellent buying opportunities.
At the Senate confirmation hearing into Yellen’s appointment by President Barack Obama she articulated her vision of future Fed policy. Anyone listening as I did could come to the same realizations. The continuation of established Fed policies will mean markets will continue going up.