The bull market in stocks continued in the second quarter as stocks are off to their best start in 15 years. Andres Garcia-Amaya, global market strategist at J.P. Morgan Funds, said the Fed taking its foot off the stimulus pedal is a positive, not a negative for stocks going forward. "If the reason the Fed is starting to taper its bond purchases is because the economy is getting better (and inflation is tame), that is actually good for equity markets," Garcia-Amaya said. "The analogy is the training wheels are coming off. And that means more market volatility. At first the market will be wobbly, just as a kid trying to ride a bike on his own. If we continue to get data that shows gradual improvement, the stock market will realize this is healthy and it will mean stronger earnings. Stocks will be OK in a rising rate environment."
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