BOB JANJUAH: A 25-50% Bear Market Is Coming
June 14, 2013
Fed taper, or when the Fed will begin to slow its $85 billion asset purchase program intended to lower long-term interest rates, is all the buzz in markets these days.
In a new note, Bob Janjuah, Nomura’s uber-bearish strategist writes that the taper will happen but that it will be “gentle”.
He also writes that it won’t have anything to do with the strength of the economy or wage inflation.
“The Fed also knows that it was held at least partially responsible for creating and blowing up the bubble that burst spectacularly upon us all in 2007/2008. But very importantly, the Fed now has explicit and pretty much full responsibility for regulation of the banking and financial sector…