The Rally Rekindles. How Long Can It Last?
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Well well well... looks like Ben Bernanke knew exactly what he was doing after all yesterday, when he announced the Fed was going to start tapering its QE efforts. He said the economy was on pace for decent growth in 2014 (and presumably would need less stimulus), and then today we heard news that 2014's projected solid growth may have gotten an early start. As it turns out, Q3's GDP growth rate ended up being a whopping 4.1%, up from the original guess of 2.8%, and even better than the first revised guess of 3.6%.
Granted, I think the third quarter's big growth was largely the result of a weak number being used as the comparison, but still, it's an encouraging signal. Maybe I should rethink my expectation that 2014 is going to be merely mediocre....
Nah. I'm pretty comfortable with the Fed's forecast for growth of right around 3.0% next year. That'll be good for the market, but not necessarily great.