Will the Fed taper? If so, when will they taper and by how much? No one knows and because the markets just abhor the unknown, it is why the stock market declined this week. Pay no attention to these histrionics.

The simple fact is that markets need to consolidate, especially in a bull market. Of course, that doesn't sell newspapers or keep you tuned into the television when you should be out enjoying the weather. It is August, people are on vacation, and those who are not are bored to tears. Fretting about will they or won't they passes the time and if you are nimble you might make a little money off the angst in short term trading.

Listen to me: markets discount the news once, not twice, and especially not three times. From May 22 through the end of June, the stock market discounted the Fed's announcement that they planned to taper their stimulus program if and when they felt it was appropriate. It doesn't matter whether they taper in September, by the end of the year or next year. It doesn't matter by how much. All that matters is they will and that the market declined by over 7 percent as a result.

The present pullback in the market is about hitting another record high, (last week the S&P 500 Index breached 1,700) and is now consolidating those gains. End of story. There's nothing more to it than that, so why don’t we all move in and stop rubber-necking.

Instead of fretting over what is happening in the U.S., readers should be paying more attention to Europe. If you haven't read last week's column "Europe is Recovering" access my blog www.Afewdollarsmore.com and have a read. In a nutshell, Europe's recession is coming to an end led by Germany, the powerhouse of the continent. That recovery after the longest recession in years will be similar to the U.S. experience. Unemployment will remain stubbornly high while the economy will grow but at a moderate base.

Values in Europe lag those in the U.S. stock market. In my opinion, those who invest now and are prepared to wait will see some hefty returns over the next few years. There are many who still doubt that an anemic recovery in Europe won't help stocks much, but they said the same thing about the U.S. market back in 2010 and look what happened here.

Over in Asia, Japan (another long-term favorite investment of mine) has been going through a period of consolidation that I expect should continue into the fall. Both the Nikkei Index as well as the Japanese currency have experienced huge moves since last November. A period of consolidation is almost a text book requirement before further advances (in the case of stocks) and declines (the yen) can be expected.

August is traditionally a disappointing month for U.S. investors. Stocks usually trade aimlessly in a listless fashion. My advice is to simply ignore the headlines and gyrations in the stock market this month. September will be time enough to take the measure of the markets for this coming fall.

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.