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Thursday, December 12, 2013

Tapering! Should i enter?

Should we as investors care about Fed's tapering even if stock prices has gone down quite a bit? Low interest rates has certainly improve earnings across companies. There are certain companies with low debts or rather no debts and still maintain constant earnings.

Tapering will only affect those companies with high borrowing rates and will affect less for companies with low or close to zero borrowings.

As economic outlook improves, tapering might kick in to maintain or improve the strength of the currency.

When it doubt do not enter the market, there are still uncertainties ahead and nobody knows what will happen next.


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