Yesterday's 2.4 percent drop in the S&P 500 instantly discredited the widely held view that the initial response to an Obama victory would be bullish because the Fed would remain free to pursue QE3 for at least another four years. Fed Chairman Ben Bernanke is now likely to be appointed in early 2014 for another four-year term if he wants to keep his job. If not, he'll be replaced by a like-minded successor. Today's WSJ lists the usual suspects who would make good Bernanke clones, including Janet Yellen, Don Kohn, Roger Ferguson, Alan Blinder, and Larry Summers. So why the Bronx cheer from investors?
Today's Morning Briefing: Nothing to Fear, But... (1) The meaning of life: A full tank of gas. (2) Bully for Obama. (3) Bernanke's clones. (4) Is Washington running on empty? (5) The Thelma-and-Louise scenario. (6) ObamaCare's unintended consequence. (7) Why do Republicans coddle rich Democrats? (8) Apocalypse now, postponed, or never? (9) Europe's slippery slope. (10) Fretting about revenues. (More for subscribers.)
Dr. Ed Yardeni is the president of Yardeni Research, Inc., a provider of independent global investment strategy research. Yardeni explores trends in the economy and financial markets that are vital to a broad spectrum of investment decision-makers.