The Market Soars While the Bears Drone On
On Thursday's Market Foolery, host Chris Hill and Motley Fool One analyst Morgan Housel discuss the market, the Fed, and pundits.
With Federal Reserve chairman Janet Yellen announcing yesterday that the Fed will be tapering another $10 billion, Chris wants to know if Morgan finds the announcement surprising. Morgan explains that yesterday was no surprise because, he believes, the Fed does a good job of explaining its motions in advance.
Morgan continues to dive into how he doesn't pay attention to articles suggesting the Fed props up the markets, as he doesn't see much evidence holding up the arguments. Chris notes that pundits who make bearish predictions have had a hard couple of years. To that end, Morgan notes that bearish pundits usually offer such comments without contextualizing the argument in the current economic conditions, and yet they don't suffer any repercussions.
Additionally, Morgan believes that people listen to the bobbing heads for validation and not much more. Both Chris and Morgan believe that it's the ticket to getting on television.
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