Comments on Janet Yellen

Should President Obama has announced the nomination of Janet Yellen to succeed Ben Bernanke as chairperson of the Federal Reserve come as no surprise to us, especially following Larry Summers' decision last month to withdraw his name from consideration for the post. We expect that the confirmation process will be a smooth one and that, once confirmed, Yellen continue the easy money policies that have characterized the latter years of the Bernanke Fed. While we are wary of the long-term consequences of such policies (particularly of quantitative easing), it is possible that the very fact that a nomination has been made may be of some modest consolation to the markets. That said, our more immediate concerns are related to the on-going stalemate in Washington D.C. surrounding the continuing resolution and the debt ceiling.

The views expressed represent the Manager's assessment of the market environment as of October 2013, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Views are subject to change without notice and may not reflect the Manager's views.

10/13 (11491)

Notes from the desk