The stock market has been quite volatile in recent weeks. A lot of people are of the opinion this it is due to the newly discovered Omicron variant. But in my previous article, I demonstrated that Omicron was never a concern to Wall Street. So then what was it that really spooked the stock markets? Well, it was the US Fed’s earlier tapering announcement. If you are an investor, you may have heard “tapering” and “interest rate hike” a lot lately, but few people understand what they mean. I found many of the discussions are at a very superficial level. So in today’s article, I will explain to you:

• What is Fed Tapering and how does it work?
• Why does Tapering matter to the stock market?
• What does Fed Tapering have to do with China’s crackdown?
• What are the risks and opportunities in this environment?

Some of the information may be hard to digest at...