On Hogs and Opportunity
June 24, 2013
“Big money does organize itself somewhat like feral hogs. If they detect a weakness or a bad scent, they'll go after it.”
-- Richard Fisher, Dallas Federal Reserve President
It should come as little surprise that market volatility has surged in the wake of Chairman Bernanke's comments about tapering quantitative easing (QE). Fast money chasing the latest move may open up a big opportunity to buy great growth names at 5% to 10% off. In my view, the Fed has presented us with two outcomes: Either (1) the economy improves sufficiently for the Fed to throttle down QE and let long rates rise to 3 to 4% (which I see as a long-term positive) or (2) the economy stays sluggish and QE continues.
I'll choose either option.
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.
The information in this report should not be considered a recommendation to purchase or sell any particular security.
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