The Daily Dive #051 - Taper Talk Reemerges

With the S&P 500 continuing to reach all-time highs seemingly almost daily, with the last 5% correction occurring 10 months ago, talk has begun to reemerge from Fed officials to start tapering asset purchases programs. Robert Kaplan, President of the Dallas Fed, is proving to be among the loudest voices. The following are all tweets today from Walter Bloomberg:

KAPLAN SAYS FED HAS COMMUNICATED A TAPER IS COMING

KAPLAN SAYS CREDIT SPREADS ARE HISTORICALLY TIGHT

FED'S KAPLAN SAYS THERE ARE SOME DISTORTIONS IN THE ECONOMY PARTICULARLY IN CREDIT MARKETS

Spread Between High Yield Corporate Debt And 10-Year U.S. Treasury 

In the spirit of the recent taper talk, we wanted to republish our thoughts on a Fed taper that we originally published back on May 29 of this year.

The Daily Dive #013 - The Fallacy Of Taper Talk