Taper=1987

Taper=1987 – SafeHaven

The same stock market carnage awaits investors just around the corner if the Fed decides it is time to end QE. Only this time the spike in rates won't be caused by inflation but by the central bank itself. It doesn't matter if inflation causes investors to fear that the Fed will raise rates (as it did 1987); or if borrowing costs increase due to the fact that the Fed has to stop its indiscriminant and massive manipulation of the yield curve--the result will be the same.
The Doves at the helm of the Fed realize this and that is why they are extremely reluctant to end QE. Investors most likely have at least until March of next year before they have to worry about a genuine tapering of Fed asset purchases...if at all; because the economy should take another turn downward due to the implementation of the Unaffordable Care Act and interest rates that have already increased. Nevertheless, it is essential to have a plan in place to preserve your assets and profit from the equity market crash in the unlikely event the Fed does go down the tapering road early next year.