The stock market today is still climbing, two days after Federal Reserve Chairman Ben Bernanke made the surprising announcement that the Fed would start tapering its quantitative easing policy in January.
The afternoon of the announcement, the Dow Jones Industrial Average jumped 292.71 points, the Nasdaq gained 46.38 points, and the S&P 500 was up 29.65 points. Since Wednesday, the Dow is up 404.71 points, the Nasdaq 86.17, and the S&P 500 41.78.
Do these market gains mean the Fed taper will push markets even higher than the records already hit in 2013?
Money Morning's Chief Investment Strategist Keith Fitz-Gerald appeared on CCTV News last night (Thursday) and answered that question. Fitz-Gerald also discussed the muted reaction from the global markets, whether the Fed taper happened too early, and how significant the Fed's action on interest rates is to the global markets.