The re-election of President Obama reinforces the likelihood that the bond market will remain anchored for quite some time to come by the extraordinary degree of monetary accommodation that the Federal Reserve is providing. T
his was likely to be true no matter who won the election, but President Obama’s re-election ensures that the Federal Reserve will remain chaired by an individual who will favor keeping in place a highly accommodative stance on monetary policy if Chairman Ben Bernanke leaves the Fed when his term expires in January 2014, as now appears likely.
The printing press will keep rolling, in other words.
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All American Investor
Original content Bob DeMarco, All American Investor