Tolerating Tapering

(1) Stock prices: 10% per year for another four years? (2) Looking down on tapering. (3) Terminating QE1 and QE2 led to big corrections. (4) From QE1 to QE5 and beyond. (5) FOMC sees more of QE’s downside for financial stability. (6) Diminishing returns. (7) Not sure if and how it works. (8) A good trade: More growth less QE. (9) Ideal for Rational Exuberance scenario, with earnings rather than P/Es driving stock prices higher. (10) They’ve had enough of QE.