Well, not many people saw that coming! The Fed decided yesterday that the US economy was not strong enough to start the QE taper, so everything (except the dollar) has shot up overnight. The FTSE is up 90 points so far today, but I’ll still be surprised if it breaks out of its 6000-6800 range. I think the euphoria may continue a little while, but once the market has thought about it, we may go back to a mindset where bad news is bad news again. Recently bad economic numbers have been welcomed as making the taper less likely, but, now that Mr. Market has got used to the idea of the taper, I suspect that concern will return to the strength of the recovery.
