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Strategies & Market Trends : Zman Market Timing

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From: zman6911/1/2013 11:43:53 PM
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Prediction:

Jobs Report next Friday will be much stronger than expected. That will kick-off a sell-off in stocks as the market starts to fret about the possibility of a December taper.

I think it is 50/50 whether or not the Fed will taper in December but I lean towards a $15 Billion token taper (all Treasuries) just to grease the skids.

After that I expect a much bigger $30 Billion taper in March (again all Treasuries), $20 Billion MBS in June, and $20 Billion MBS in September, to end QE in September 2014. I don't expect the first rate hikes until late 2015 or early 2016.

I expect markets to be volatile throughout the taper period which I believe will be completed by September 2014.
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