It wasn’t long ago that we discussed Bernanke throwing cold water on the rally, something I thought was overblown. But on Wednesday after the markets closed, he did a complete 180 and essentially gave the crack addict more crack. While I was not at all surprised with what he said, I thought the market overreacted somewhat. Precious metals stocks and emerging markets were the biggest beneficiaries of the Bernanke Bang which should be expected given how decimated they were. Friday morning should be quiet and it will be interesting to see how much firepower the bulls have left heading into the weekend.
The bull market may be old and wrinkley but it remains alive and should be even after the next correction later this year.
