In the upside-down world of taperland, sometimes good news is bad news.
The knee-jerk reaction in stocks was that better growth makes a taper more likely. Stocks didn’t like it and the S&P 500 fell a few points to 1631.
Now, traders are having second thoughts. While a taper might raise borrowing and mortgage costs marginally, the Fed isn’t exactly taking away the punch bowl. Inflation is low and rates will stay low for years. Toss decent growth in the mix and that’s a recipe for corporate profits.
The S&P 500 is now up 10 points to 1645.
