Now that the Syria situation has been moved to the back burner, market participants are refocusing on the same old question: What will the Fed do?
This question is more pressing than it's been in a long time. The Federal Open Market Committee will make its next policy statement next Wednesday. And many expect that when it does, the Federal Reserve will announce a reducing, or "tapering," of its quantitative easing program.
(Read more: Retail investors shrug off fears of Syria, Fed taper)
So will the Fed taper? In my view, yes, a taper is coming—and the better question to ask ourselves is, what will the taper look like? Will it be a $20 billion to $25 billion reduction, or will the Fed take a more cautious route, and only taper down $10 billion or $15 billion?
I believe that the Fed will taper somewhere between $10 billion and $15 billion, and I also believe that this number will mostly be factored in to asset prices already.