The institutional buy side of the stock market gets nervous when it hears about anything that could cut the props from underneath bull sentiment. The main thing sustaining this market's unsustainable upward trajectory is the Fed's bond purchase program. Dissenters from the Fed Chair's QE ideology have hardened their stance in favor of an end to the nonsense. An early end would IMHO restore market sanity at much lower valuations. The dissidents have not won converts and will not carry their argument farther in the face of insolvent federal entitlement programs.
The bond buying will continue. The stock market's cheerleaders will continue to spout their "buy" memes to their retail advisory branches and media sympathizers. The QE-fueled rally isn't over just yet. The next chapter won't be pretty and the Fed's brakes won't be effective. I will continue to keep my cash on the sidelines until I hear a fever pitch of lamentation.
