Well, not really. But it seems he has a way of charming the markets lately.
Let's hope it continues. Otherwise, the market will need a new hero.
I have been asking myself the question: should Central Bank statements be considered lagging indicators in certain markets?
In an uptrend, Central Bank statements will determine when the party's finally over.
During the downtrend, Bernanke was certainly more action-orientated. Otherwise, he would have just been adding fuel to the fire with his words, which he certainly did more than twice.
Now that equities have bounced back so much, Bernanke comes along and says that the growth prospects in the short term appear good. For people already on the right side of the market, this is a lagging indicator already, but not an unappreciated one.
Whilst the markets and the Central Bank statements are a bit symbiotic, in order to really make money, we kind of have to be ahead of the Central Bank statements sometimes.
For now, I think no news is good news from Bernanke. And as long as Bernanke continues fanning the recovery, we're OK for now. Never mind how he was the fair weather friend who in a way spurred the economic collapse on. So water under the bridge, isn't it?
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