So Typical

Before I begin a long weekend to traverse the country, with friends, the 9th floor has but one final word to utter until our next meeting.

Doubt the power of the Federal Reserve at your own peril.

This is exactly what happened before. The Fed announced QE3 and the market lifted off, then sold into the last weeks of September. Men and women tore through the streets to speak the gospel according to Deflation.

And how did that end for them?

QE3 is a program in PERPETUITY. Surrender your mind to the word and allow it to spread over your thoughts like water on the surface of a table. It must soak into all the crevices and cracks, filling your head.

PERPETUITY.

Each year that QE3 is not reigned in is another ~$500 billion on the markets. In that sense, not announcing the end of QE3 is no less spectacular an event than announcing it was.

The market may have its little selloff. And the circle jerkers may jerk in circles. But bet against equities and you will die, in the end.