Thursday, March 20, 2014

FAKE IT 'TILL

Fake it until you make it is a saying nearly as old as what goes about comes about. And that--given it's new emphasis on qualitative rather than quantitative policy from the Federal Reserve-- roiled markets yesterday.

After all, so the assumption goes, quantitative numbers can be somewhat measured. But what's up with qualitative anything? The problem here is the quantative worshippers might be fooling themselves, believing their benchmark is the more objective of the two. It's also become the familiar beaten-down path.

Either way, investors' safest bet remains: the Fed is where it's always been--behind rather than out front of the curve. That's about as quantative and qualitative as it gets.

http://blogs.wsj.com/moneybeat/2014/03/19/analysts-react-you-have-to-read-this-statement-as-risk-off/

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