Dave  Moenning

Good morning. In case you are not familiar, the term "Bernanke Put" refers to the idea that if things get bad enough in the stock market (SPY, DIA, QQQ, MDY, IWM), owners of equities will always be able to "put" their shares onto Ben Bernanke at some point. Well, not literally of course. However, history has shown that whenever things get ugly - I mean really ugly - the Fed's cavalry has always mounted their white horses and come to the rescue with plans to stimulate the economy, which, of course, caused stock prices to improve.

To be fair, it wasn't always called the Bernanke Put. Before Gentle Ben's declaration that he would drop one-hundred dollar bills from a helicopter if he had to in order to keep the economy from entering a deflationary cycle (think Japan since 1990), it was the easy money policies of Alan Greenspan that stock market investors came to rely on. Whether it was in response to the Crash of '87, the first Gulf War, the emerging markets crisis, or 9/11, stock investors knew they could count on Greenspan to cut rates and resurrect the market.

Since his appointment to the post of Fed Chairman in 2006, Ben Bernanke has upheld this long tradition of trying to rescue both the economy and the stock market whenever there has been difficulty. And on Wednesday, the FOMC made it quite clear (well, in Fedspeak terms anyway) that the Bernanke put "will" likely return to a bond market (IEI, IEF) near you in the very near future - IF needed, of course.

Although the FOMC didn't do a darn thing yesterday, the statement released alongside the announcement that the Fed was standing pat for the time being contained one very simple line that caused analysts everywhere to sit up and take notice. In the section of the FOMC statement dedicated to what the Committee may or may not do next, the Fed wrote that they "will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions."

To anyone who has spent any real time following the Fed and/or trying to interpret its cryptic communications (which, for the record, is a MUCH easier job today than it was in the early 1980's), today's statement was viewed as nothing short of a proclamation that the Fed "will" mount up - and soon - as long as they are needed.

Dave Moenning

David Moenning is the President and Chief Investment Strategist for Heritage Capital Management, a Chicago based SEC Registered Investment Advisory firm which he founded in 1989. You can follow Dave at .