January 31, 2014
That is when Bernanke’s term ends as head of the Fed. After listening to him being questioned in Congress the past two weeks all that I am left with is the realization that I have been delusional to think that Ben stands for anything other than inflation is the solution. Essentially a Fed Chairman has two choices to follow in leading the economic direction; 1) he/she can increase or decrease reserves; or 2) can threaten Congress to get its act together. Bernanke limply tries the latter and then says to Congress, if you don’t do what I recommend, then I will add reserves. And so the game goes on. One good thing could happen if Gingrich is elected President, Bernanke would be gone.
At the moment the asset markets are reacting to Bernanke and are melting up and the dollar is being pushed lower. This is not good for our market positions and while our three and twelve month performance is still very positive, the last month has been a drag. As such we are watching closely to detrmine if we should move to the sidelines. We will notify you if we do.