“As Big Week Nears, Thoughts Swirl On What’s Priced Into Stocks,” by Donna Kardos Yesalavich and Kristina Peterson, Dow Jones.
“If the Fed is open-ended and says ‘we will do it for as long as it’s necessary,’ that could clearly open up [fears] that all of a sudden, if you get good economic data, the Fed will stop supporting the market, and thus keep bad news viewed as good,” said Gary Flam, portfolio manager at Bel Air Investment Advisors.
Still, Flam said, that phenomenon can’t last forever.
“You need to see strong economic data and have that be good for the market because continued bad economic data [would] show that, no matter what the Fed does, it’s not enough.”
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