Where do we go from here?

And so, our stock market continues to recover.  Last week some signs appeared that suggested this might be the case and sure enough, right on time, it happened.  The question is where do we go from here?

This week the Federal Reserve meets and may consider reducing, tapering, the amount of bonds they buy in the open market.  Both the stock and bond markets have been worrying about this since the Fed Chairman Bernanke first suggested it might be in the offing back in May.

Now that tapering may begin, the markets seem to have adjusted to the prospect and it may not be much of an event.  Chances are that markets will return to focus on fundamentals which we believe continue to improve.