June 19, 2013 Comments

So, apparently the FED has signaled that the “quantitative easing” consisting of the Feds buying $85 billion per month worth of bonds and mortgage securities will taper off sometime this year and end around this time next year. And all this will occur only if the economy is strong enough. Although totally expected the S&P fell 1.4% after this news and Toronto fell 0.8%.

I am not convinced that this is anything to worry about. Markets are always unpredictable. But if interest rates rise somewhat and the economy continues to recover that does not really portend disaster for stocks. If markets decline much, my thoughts will turn more to buying.