The liquidity-fuelled bull market remains intact. Fears of the Fed making a premature exit from quantitative easing, which caused the sell-off in mid-June have proven misplaced. In his July 17th testimony to Congress, Ben Bernanke said, “With unemployment still high and declining only gradually, and with inflation running below the Committee’s longer-run objective, a highly accommodative monetary policy will remain appropriate for the foreseeable future.”
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