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Jim O'Neill - Don't Worry So Much About Tapering; the Market Is Well Aware That It Will Happen

December 18, 2013 | About:
CanadianValue

Canadian Value

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Jim O'Neill thinks that by now the market will not be surprised when the Fed starts to taper.

His point: Tapering is all people have been talking about for a year. This is not going to be a surprise.

When tapering does start he expects it will be done very slowly and very carefully. He does not foresee an immediate bear market for bonds like was experienced in 1994.

About the author:

Canadian Value
http://valueinvestorcanada.blogspot.com/

Rating: 4.0/5 (3 votes)

Comments

AlbertaSunwapta
AlbertaSunwapta - 3 months ago

I my view tapering itself isn't anything to worry about, though over time changes in rates will impact earnings in a big way. What tapering can do is trigger other events in unexpected ways and places which can in turn have ripple effects. As a result I try to scan the horizon and maintain a cursory mental list of threats. Small problem abroad can compound and correlate and hit optimally priced domestic equity markets in unexpected ways.

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