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If QE Was Withdrawn....

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Comments

  • DotMatrix
    DotMatrix Posts: 79 Forumite
    Well the Fed have said they will cease QE in 2014 at some point due to the improving US economy.
    Taking this at face value and the subsequent drop in the Dow straight after the news in announced earlier, it appears the market has reacted negatively to better economic news. i.e. economy improving, markets down.

    The question to ask is how much has the FTSE priced in the winding up of US QE. I would imagine a large element but with such a resolute response from the Fed the FTSE will be further corrected as a result.
  • redbuzzard
    redbuzzard Posts: 718 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Sometimes, when uncertainty is reduced, things can settle down a bit even when the news isn't directly helpful - especially if it relieves the fear of something worse.
    "Things are never so bad they can't be made worse" - Humphrey Bogart
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
    with all these corrections, perhaps it's time to buy shares in tippex manufacturers :)
  • Yes the Dow down -1.35% in a very short time so I imagine there will be buying opportunities tomorrow.

    People scoff but what has my sheep dog (my new Gentleman friend) been predicting???? Down diddly down down.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    edited 19 June 2013 at 10:33PM
    Yes the Dow down -1.35% in a very short time so I imagine there will be buying opportunities tomorrow.

    People scoff but what has my sheep dog (my new Gentleman friend) been predicting???? Down diddly down down.

    Still higher than Friday last.

    Did you watch Skippy as a child?;)
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • Still higher than Friday last.

    Did you watch Skippy as a child?;)

    Nope. Telly had not been invented when Old Mutton Chops here was a child :eek:
  • Any guesses at how much the FTSE will tumble tomorrow on the back of Bernancke opening his mouth today?
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Nope. Telly had not been invented when Old Mutton Chops here was a child :eek:

    How did you know what Skippy was then?:p
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • Surely a controlled end to QE is to be welcomed - a replacement with meaningful economic growth can only be a good thing. Yes it will be turbulent until the markets work out their real worth following a influx of "false" money but at least then we'll have a better idea of where we stand

    Tomorrow? FTSE down 92 points. Is there a prize for whoever guesses closest?
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Any guesses at how much the FTSE will tumble tomorrow on the back of Bernancke opening his mouth today?

    Down a bit and then it will go up later.

    QE slowing and coming to an end must be factored into the markets by now.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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