The Federal Reserve announced this week that its unfamous “tapering” will be considered to be over by October, this means that Quantitative Easing is going to stop and, most of all, that traders are about to get really, really nervous
(original publishing date: 07/11/14)
So now we finally now that QE will be over in October.
Until that moment, there is absolutely no reason to expect a big trend reversal at Wall Street, and you know why we say this ?
Take a look at the past:
Every time QE ends, stocks fall (and it’s not a small fall).
Take a look at the bond market too (10-year US Treasury Bond Yield):
And the most interesting part…gold:
We’re going to see a nice end of the year, you can be sure about that (but the true collapse will probably come in 2015, when the Fed will raise interest rates with the market expecting it to happen only in 2016).
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