Fed bond buying programme... does the market need to react
Posted in the Financial Markets Forum
Milton Keynes, UK
#1 Jul 14, 2014
With the US federal reserve looking to reduce it bond buying programme will the marker over react
Probably it will but it has no need to. Investors should see it as confidence in the market
The fed must believe that the economy will be stable without so much bond support
Investors should take confidence in the market and look at the long term picture.
Will the Fed raise interest rates?
No doubt but again thus shows confidence in the market with individuals being able to get better rates on their savings
In turn giving banks more money to invest into the markets we all know that high demand will rise stock prices and at the end of the day aren't share prices based on supply and demand?
People are currently talking about a market adjustment
For sure some companies share prices need to either go up and down and be corrected but investors should topple share prices over investor fear and panic selling
Long term investment and trend riding will yield greater returns over the long term, won't it?
Personally I believe that buying companies based on results and performance is the way forward. Any company with good results will make more.money over the long term through dividend returns and share growth as demand will naturally raise the share price.
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