The Market Is Down Because of a Lack of Money Wanting to Play the Market

From today's EPJ Daily Alert:

I have written this before in the ALERT but it makes sense to repeat
it at this time. Often the reaction to news is more important than the
news itself. The fact that Bernanke was going to start his "tapering"
later this year should not have come as a surprise to markets. Thus,
the poor reaction in the bond markets and stock markets to Bernanke
remarks that should have been anticipated is instructive. It suggests
confirmation of my view that the slowing money growth is resulting in
less funds available to bid up stocks and bonds.

Indeed, WSJ got it right on its editorial page as to what the view
should have been:

"All of those market mavens betting for weeks that the Federal Reserve
would announce the beginning of the end of its bond purchases were
disappointed on Wednesday.

"The Fed still runs on Ben Bernanke time, and the Chairman is
determined to keep his foot on the monetary pedal at least until his
second term expires next year."

There really wasn't much to spook the market here, other than a lack
of funds to bid prices up, and they are decidedly not being bid up.

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