The S&P 500 After The Fed Sets Taper Expectations For 2021-Q4

Posted: Aug 30, 2021 1:21 PM
The S&P 500 After The Fed Sets Taper Expectations For 2021-Q4

Source: AP Photo/Richard Drew, File

This edition of the S&P 500 chaos series won't be a surprise at all. On Friday, 27 August 2021 the Fed's minions went all out to set the expectations that the Fed will start slowing down and tapering its stimulus bond buys in the fourth quarter of 2021. Not uncoincidentally, the dividend futures-based model says investors are mostly fixing their forward looking focus on 2021-Q4, so mission accomplished for the minions.

Looking forward, we see the dividend futures-based model is about to enter another period where the volatility of past stock prices affects its projections of the future. We've updated the redzone forecast we've been showing in the 2021-Q3 chart since we first introduced it at the beginning of the quarter, which assumes investors will remain focused on 2021-Q4 from now until most of the way through the fourth quarter of 2021.

That's pretty much the week's news in a nutshell with respect to moving the markets. Here's the rest, where if you're not familiar with how little most political events affect stock prices, you might be surprised to see how little President Biden's fiasco in Afghanistan is affecting the market, which is paying much closer attention to what the Fed is planning to do.

Monday, 23 August 2021
Tuesday, 24 August 2021
Wednesday, 25 August 2021
Thursday, 26 August 2021
Friday, 27 August 2021

Over the last couple of months, we've been featuring our favorite sources of market data and news at the end of the weekly editions of the S&P 500 chaos series. Obviously, there are a lot more than what we've featured, so if you're reading this article on a site that RSS news feed and allows comments, please point to your favorites - we're always on the hunt for high quality news and data sites!