14 Haziran 2013 Cuma

Why so FEAR if US Federal Reserve stop QE ?

Global shares tumbles to multi-months low, especially in Asia whom did well year-to-date thanks to Japan's Abenomics. Commodities and gold also can't spare from the bearish sentiment across investment markets. Reason? US Federal Reserve may stop/scaling down their bond-purchase program. Huh!!!


Is this the real reason?
Like what I always said, analysts always give a reason for whatever bull or bear markets (after it had happen). For me, the main reason was (again) profit-taking activities took place in view of the good performances during first half of this year.


How about Federal Reserve's QE ?
It's funny to blame Federal Reserve for the corrections. First, why Fed want to stop QE at the first place? It's because US economy is recovering well. Wasn't this a good news to global markets? Definitely. Then, why we're so fear if Fed stop QE ? Doesn't make sense, right?


Anyway, like what I said, the real reason was profit-taking activities which is normal after a good run-up. Current stage must took place before the market can move higher. Good for investors. Good for you. Good luck.

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