Markets and tapering

It is a dangerous time to be in stocks. For the past year, most indexes have been on the rise. Much of it might be attributed to the stimulus provided by the Fed known as QE. Now, the prospect of tapering and a decline in the dollars value have been sending The american indexes like the DOW and S&P downwards.

Meanwhile European stocks are doing much better. Noticeably the Ibex35 grew about 0.73% today and has achieved very high levels of increase in the last month, even amongst other european countries.

So be weary. The question is weather the Fed will commit to reducing the amount of stimulus, or if it will cave to the falling indicators and pursue, perhaps an even more aggressive policy.

Either way, I think U.S. stocks are in for a “readjustment” in the future, and I don’t doubt this will affect most other stocks too.


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