Comment on the situation on a market 16.12.13

Bernanke may quit the job before the appointed time

Already on Wednesday, Bernanke may announce stimulus reduction. This may be due not only to the improved U.S. economy, but perhaps to the Bernanke’s announcement on Wednesday about his early resignation in December of this year, instead of January 2014. Anyway, this week there will be a vote on the candidate J. Yellen as the head of the U.S. central bank, and if she passes the vote she could become the head of the Fed before the appointed time.

If we pay attention to the history of change of the Fed’s leaders, than we can notice that the head of the Fed usually takes important decisions on monetary policy before he/she leaves, and hence already on December 18^th Bernanke may declare the end of the bond purchasing program.
 

If it really happens so, then the tendency of investors for the risky game will noticeably fall. Stock market, commodity and raw material assets will be under pressure, and the U.S. dollar on the contrary will receive local support.

Assessing the overall picture of the markets, we can assume that all the activity will be significantly reduced until the Fed's decision on the monetary policy.

Semyon Kamenski​