Fed Chief Proves Prescience

 | Sep 18, 2013 | 2:46 PM EDT  | Comments
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Thanks, Ben! Yep, Ben Bernanke listened to the domestic companies. He heard what they have been saying since interest rates spiked. He recognized that the psyche had changed in housing. He recognized that materials and real estate investment trusts (REITs) and utility stocks have been crushed. He truly has the current pulse of what's happening at companies such as Wal-Mart (WMT) or Target (TGT) -- as well as in housing and in the actual hiring that hasn't happened yet.

Plus, the chief is prescient as always. He knows what's about to happen in Washington. He saw the impact of the 2011 debt downgrade -- the 2012 fiscal cliff -- and he doesn't want to be the one who sends us back into a recession.

All that said, I would be more of a seller than a buyer right now, except when it comes to housing, autos and some retailers because the government shutdown will be all that we will be talking about for weeks on end now that this meeting is out of the way.

That's not bullish. It's bearish.

The Fed chief gave you a chance to lighten up ahead of the gauntlet of Washington, D.C. And he most definitely underpromised and overdelivered.

If you care about the economy not stalling out you should be glad about what he did because in a few weeks' time we are going to need all of the quantitative easing we can get.

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