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.