November 3rd: A "Sell the News" Event?

No, not the election results but the decision by the Federal Reserve on November 3rd on QE2.

While regular news is almost nothing but the mid-term election and last-ditch campaigning (amusing news today was that Prez Obama skipped lobster dinner at a R.I. fundraiser for scooping the dog poop - I can't believe he actually said that to the guests when they were about to eat... but oh well what do you expect, this is the same guy who skipped luncheon with the king and the queen of Norway after receiving $1.4 million prize money), the financial media has been focusing on the day after the election, Wednesday November 3rd, when the Federal Reserve's FOMC meeting concludes; analysts and pundits have been expecting the announcement of a new round of asset purchase by the Fed, so-called QE2.

Will they, or won't they? And how much?

Will the market do a 'flash dash', or 'flash crash'?

Marc Faber thinks the investors will be disappointed a little bit if QE2 is short of $1 trillion, but he also thinks Bernanke will launch QE3, QE4, and so on if the market reaction to his QE2 is a dud.

The stock market is overdue for correction, but it corrects after the widely-expected Fed announcement it may be a buying opportunity, he says, and a crack-up boom in stocks and commodities may ensue.

Longer-term, he's bearish bonds and cash.

Here's the interview on Bloomberg:

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