Monday, October 20, 2014

Risky Business Monitor: Oct. 20, 2014

Federal Reserve Bank of St. Louis President James Bullard appeared to halt the equity market’s latest period of adjustment with comments on Bloomberg Television Thursday about the Federal Open Market Committee possibly considering the continuation of its current quantitative-easing program, aka QE3+.

A nonvoter on the FOMC this year, Bullard told Bloomberg: “Inflation expectations are declining in the U.S. That’s an important consideration for a central bank. And for that reason I think that a logical policy response at this juncture may be to delay the end of the QE.”

The FOMC will announce its choice concerning QE3+ Oct. 29. If its members agree with Bullard’s position, then I believe the current stock-market bubble can remain inflated a while longer. If its members disagree with Bullard’s position, then I think the bubble will commence deflating immediately thereafter.

Meanwhile, our droogies at Seeking Alpha published six of my articles focused on Select Sector SPDR exchange-traded funds since the Risky Business Monitor linkfest last week, as follows:

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