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The taper has finally arrived. So far, investors don’t seem too perturbed.

Stocks surge even as the Federal Reserve announces plans to start curtailing its bond-buying efforts.

The Dow Jones Industrial Average recently rose 135 points, but the move to get there was quite volatile. Initially the blue-chip average fell by 67 points, but it quickly reversed those losses and was recently up by triple digits and is currently sitting around session highs.

“We got today what we knew was coming with the modest offset of forward guidance also as expected,” says Peter Boockvar, managing director at The Lindsey Group. “Forward guidance though is only as good as one’s crystal ball and therefore the pace of QE from here on out will determine where stocks go from here in 2014.”

In Treasurys, the benchmark 10-year note recently fell 16/32 to yield 2.903%. The fact that the yield isn’t even near 3%, however, goes to show how today’s move was expected by some and that perhaps the Fed has done its job in communicating to the public.

It will be more of a test over the next week. Initial responses to Fed announcements can fade away over the next few days. The Fed are reducing bond purchases by $10 billion/month to $75 billion/month.

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