When Will the Fed Begin to Taper?

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Nov. 12 (Bloomberg) -- Swan Wealth Advisors Director of Trading and Investments Mark Sebastian discusses his investment ideas on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

Comments, market, and we are seeing a little bit of a push lower in stocks, but not a big one.

Are people setting themselves up for tapering at this point?

I think everybody is looking at this next payroll announcement.

I think december will be a very big deal.

If we get as good a number as we got in november or a better number and see revisions in october or higher, i think that will force the fed's hand, but that may not be a bad thing.

And we see those numbers, if they are really good, you will see be bond market take off.

If we see three percent slowly and then maybe three and a quarter percent slowly, i do not think -- you will see the equity markets actuate.

You will see volatility in the equity markets, but i do not think you will be a profound selloff everybody is worried about.

The next one is not until next month.

What happens between now and then.

You have a really good shot at seeing the vix near 2006 lows.

I would not be surprised by an 11 handle on the bigs.

We are looking at a range ground -- range bound mark.

We are playing ping-pong.

There are no real drivers to make the market move.

What is going to drive us to move things between thanksgiving -- or really the payroll numbers.

Unless ben bernanke or janet yellen says something profound in the next few days, there will not be a real market driver.

What is going on with the five-day trade you are looking at?

This gives us an opportunity to really evaluate where our hedges are.

We are hedged at multiple levels are out the year and we are taking this opportunity to move our lower end hedges.

The ones on to the end of the year, we put the money, and you will not get this type of opportunity to buy insurance this inexpensive maybe again for the next couple of years.

So we're are really looking to take advantage of this to move the hedges toward the money.

Thank you, mark.

We appreciate it.

We will be on the markets again

This text has been automatically generated. It may not be 100% accurate.


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