Tapering has started. What it means for the stock market?
The Federal Bank Reserve has announce today at 2pm that the well expecter Tapering will commenced.
The Fed announce that The Federal Reserve will reduce its purchases of Treasurys and mortgage-backed securities later this month to not let the economy overheat and hyperinflation to take place.
The goals of the commitee through this QE has been achieved, which is to reach max employment and continued gains in the economic activity. In livht of the inflation rate, the feds will proceed to Taper by reducing is net asset purchase by $10 Billion for Treasury securities and $5Billion for mortgage backed securities. Target rate of federal funds rate will be at 0 to 1/4. The feds want the inflation rate to be below 2% on the long run.
Now, what does this mean for the $S&P 500(.SPX)$ market overall?
1. The market will no longer have big gains and movements, and the market will slowly make a correction as there is no more market manipulation by the Feds.
2. The stock will go back to its intrinsic value based on its fundamentals.
3. Value-play will emerge. And value stock will do very well in this period of time.
However, keep in mind, the S&P500 has never failed anyone since 1957. The market has always been bullish and will continue to be bullish.
So what should u do now?
Buy the S&P500 or any value stocks to profit in this market! I suggest $Berkshire Hathaway(BRK.B)$and $Vanguard S&P 500 ETF(VOO)$
Happy investing!
免责声明:上述内容仅代表发帖人个人观点,不构成本平台的任何投资建议。
- Tracccy·2021-11-04很感谢大家的分享,但我更喜欢科技公司。嘿,嘿,他们才是有能力创造更多财富的人。苹果和Tesla就是很好的例子,即使在经济不景气的时候也打不过他们,所以买他们。24举报
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- BlancheElsie·2021-11-04那很准确,但是其他方面呢?你不能忽视整体经济形势以及疫情对经济和股市的影响,所以再看,不要这么着急,保持冷静,祝你好运!Goddd Luck!!6举报
- KYHBKO·2021-11-07US government will continue to pump money into the market (at a reduced rate) and hoping that the market will fully stand on her own after the end of this.5举报
- EvelynHoover·2021-11-04Over the past year, the excessive rise in share prices caused by inflation will be improved. Inevitably, the share prices of many companies will fall.6举报
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- Eldenminaj·2021-11-04@JackPowell 购买S&;P500。很难跑赢市场。S&;P500在过去10年的表现几乎超过了所有人,包括沃伦·巴菲特(Warren Buffet)。最好买低成本指数基金6举报
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- breAkdaWn·2021-11-07pillow talk with yellen . all secrets will be known5举报
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- BartonBecky·2021-11-04Wow,bro, really appreciate your sharing. I think so, too. Let's do it now.😋5举报
- BlancheElsie·2021-11-05非常感谢您的分享,与我不谋而合。😊4举报
- ddhjnh·2021-11-09,点赞举报
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- wjtks·2021-11-07好4举报

