There are several major headwinds and tailwinds in today’s markets. Here we examine each and its potential impact on the market:
Tailwind: The “Fed Put”
“Don’t Fight the Fed” has been the operative word for a long time. That looks like it will continue. Widespread expectations were that the Federal Reserve would taper Quantitative Easing (QE). On Thursday, the Federal Open Market Committee (FOMC) voted to keep asset purchases unchanged at $45 billion in Treasury securities and $40 billion in mortgage-backed securities.