Hedge Fund Managers: Fed Taper Won't Stop Stock Surge

Sep 18 2013 | 12:45pm ET

Whatever the Federal Reserve decides to do today about its bond-buying program, it won't keep the markets from rallying along, according to prominent hedge fund managers.

U.S. stocks will not be adversely affected if the Fed decides to taper its quantitative easing program today, according to Stanley Druckenmiller, Michael Novogratz of Fortress Investment Group and Passport Capital's John Burbank, among others. The bullish hedge fund managers believe that the taper has already been priced into stocks, and that a more radical shift on bond-buying has been pre-empted with the exit of former Treasury Secretary Lawrence Summers from the race to succeed Fed Chairman Ben Bernanke, Bloomberg News reports.

"I think one of the major uncertainties in the market has been cleared up" with Summers' exit, Druckenmiller said. The Duquesne Capital Management founder had previously warned that that the end of QE3 would be a "big deal." Novogratz has said that U.S. stocks, already up in the high teens this year, could end 2013 up 25% to 30%.

"Markets can definitely rally into December," Breton Hill Capital's Frank Maeba said.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR