You’re assuming that the Fed gives a damn about the schmucks who bought into the NASDAQ bubble of the past year. IMHO, tapering is a deliberate step to prick the tech bubble before it becomes more harmful. Better a 30% drop in the NASDAQ to the low 3000s than a 50-60% drop after the index hits 7000.

You’re also underestimating the effect of collective sentiment, which the Fed can’t change. People tend to want to invest in new things, and the luster fades as time goes by and the numbers come out.

Lastly, Yellen aside (who may be more conservative than people thought — right after the March Fed meeting, she came across as more hawkish than the discussion at the meeting, and she’s not trying to sort of backtrack) we have a generally more conservative bunch of voting members, who are less willing to trade long term pain for short-term gain by pumping up asset bubbles.