When Ben Bernanke speaks, investors and politicians are like Pavlov's dogs waiting to hear the dinner bell. The only problem is that Ben and the Fed have no bells to ring. It's time for the dogs to find their own meal.
Carrying this imperfect analogy just a bit further, the psychology of the markets are led like a leash by the words and anticipated actions of Ben Bernanke and the Federal Reserve. A hint that more quantitative easing is around the corner and stocks will rise in anticipation of more money flowing into the economy and wider profit margins for corporations. Bond prices will rise as yields fall. However, a decision to create more stimulus is also a hint that things don't look so good for the economy. Furthermore, there really isn't much more Bernanke can do with Treasury security yields almost at zero now.
His best move is to use "hints" in his language that he's ready to take actions if necessary but will take a "wait and see" position. This results in the dogs of our analogy to salivate and remain satisfied for a short period until they realize that their still hungry...
But readers here are not concerned, right? You know how to build the best portfolio of mutual funds...