Two facts to consider, ever since Federal Reserve Chairman Bernanke supposedly stumbled in Congressional testimony, saying that the Fed might slow down its purchases, stock prices have lost their vigor. Of course, market rallies do not last forever and pauses after strong advances are common.
Yet view what happened to the market and to bond prices since May 21. Our diagram reveals that the Ten Year Treasury price started its descend some days before stock values hit their high on May 21.
It is plausible for the Fed to have concern about a runaway stock market at any time and it would be especially alert while the economy remains behind. Thus Bernanke’s stumble could just as well be a discrete hint to the financial world to restrain or temper further advances of current market values
DJIA -1.36 percent
NASDAQ -1.01 percent
S&P500 -1.43 percent
