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The most successful market timers: the Federal Reserve
Things were looking grim last week, especially on Wednesday, when the Dow Jones Industrial Average was at one point down by 460. The CBOE VIX indicator soared to the mid-20s for the first time in two years. Fear was palpable as investors had a classic panic attack. But then, like the cavalry in those classic John Ford westerns, the Federal Reserve rode to the rescue. James Bullard, president of the Federal Reserve Bank of St. Louis, said inflation far below its 2% target could lead the Fed to “go on pause on the taper … and wait until we see how the data shakes out into December.” The Fed is on track to finish ... (full story)