In late 2013, I predicted the Fed would taper all the way to zero in 2014, and suggested that taper would turn the Dow into a “wet noodle”, while creating a rally in gold prices. That’s the opposite of what most analysts thought would happen in 2014, and it’s exactly what has transpired.
The risk of a complete global stock market meltdown is growing now. The Fed’s number two man, Stan Fischer, has thrown gas on the fire, by aggressively suggesting the Fed’s next move will be to raise interest rates.
Many investors are assuming the Fed can engineer another huge stock market rally with further easing.
Instead, what they could experience is something more akin to an economic ice age.