Good News Worries

on Tuesday, 18 June 2013. Posted in ,
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ARE INTEREST RATES GOING TO GO UP?

upward arrow  number

The markets have seemed very nervous the last few weeks.   The reason is the discussion on “tapering” of the US Federal Reserve’s quantitative easing which has been helping keep interest rates down and money plentiful.

We have a couple of quick points to make.

 

 

The history from 1994 is not too bad, equities bounced back quickly.

Good news worries

Having said that, a few words of warning.

Still, overall, it pays to keep in mind that a return to normality is to be expected at some point pretty soon and that is wholly a good thing in the long term.  It signifies the crisis is drawing to a close, finally.

 

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