It’s awkward, isn’t it? The economic outlook for the world (or maybe just the U.S.) is supposed to have improved significantly. That’s why we have tapering, the monthly fiscal injection from the Federal Reserve for the past few years being slowly reduced. Good economic new should equate to good news for the stock market, eh?
Unfortunately (or who knows, maybe fortunately?), this wasn’t read that way by most market watchers. With liquidity perceived to be drying up (heck, there’s still $65 billion sloshing around every month), there are fears that interest rates could shoot up and that funds might leave emerging markets. With property prices slowly beginning its slow descend from a frothy top, these news have sent the local index plummeting at the start of 2014.
Alas, this also presented some buying opportunities for me. With low interest rates set to rise, I firmly believe that (Read more...)
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