China will cut back its interest rates, this follows the “quantitative easing” of Japan and both these moves come on the back of the US scaling back its quantitative easing. So what do these moves by the countries mean for the stocks markets and economy? Well, one thing is sure, there is much liquidity for economies and low interest rates will be welcome by many.
While these may be news for investors to stay vested in the stocks markets thinking that the stocks markets will be boosted by the measures of these key economy, I will like to highlight that whenever I see taglines like “US stocks at record highs”, “Stocks are promising”, I will remind myself not to take everything at face-value, especially news.
Financial news, financial analysis and financial commentary and even this financial blog post are mainly not facts, they are opinions. Financial facts are the undisputable ......