With the Taper now off the table, and with the next earliest probable discussion of a Taper at the December FOMC meeting if then even, Bernanke - who may now stay have no choice but to stay for a third term - has decided to reflate the bubble to end all bubbles, along the lines of what we speculated may be the case in "Bernanke's Helicopter Is Warming Up [2]", it is worth refreshing what Bernanke Asset Management's year end stock market target is. As a reminder, back in April [3]we highlighted that in a world of central planning the only relevant thing to risk assets is the size of the Fed's balance sheet, and since there will be no change in the rate of ascent, we can once again repost what we showed nearly 6 months ago as to where the Fed believes the fair value of the S&P500 should be. The answer: 1,950 or bust.
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