Tapering will eventually be bad news for US stocks. But for now it is bad news for emerging markets (EM) and that means money flows out of EMs and into developed markets like the US. If EMs begin to have some real problems though, it will negatively impact US stocks. Think of EM currencies falling precipitously in value and current account deficits increasing rapidly. Watch China as their interbank rates jumped to 10% at one point on Friday. Tapering has already begun to cause EM rates to rise.