If the Fed tapers and the market subsequently tanks soon thereafter even Joe Bloggs will know the market is totally addicted to QE. Then when it's reinstated, people will know the funny money is here to stay and watch tangible assets and companies dealing in tangibles sssskyrocket. That's my take and I've put my money where my mouth is.
There's every chance we've seen the bottom price of gold and silver in the foreseeable future as well
The Aussie dollar has jumped about a cent against the greenback as well. Glenn Stevens is gunna be pissed
No surprises that there is no taper. What we can expect is another interest rate cut this year, probably at the next meeting of the RBA.
I was surprised that there wasn't a smackdown just before statement, there was a nice little rally a few minutes beforehand thanks to those in the know.
Watching how the rise in the Aussie dollar is absorbing almost all the gold & silver spot gains on USD.
Wait till the Asian markets open up. They're gonna gobble up the news and the prices are gonna shoot up even more!
If anyone missed it; http://www.bloomberg.com/news/2013-09-18/fed-refrains-from-qe-taper-keeps-bond-buying-at-85-bln.html
Said it before, I really doubt the Fed has a choice, they MUST print in order to buy the Treasuries nobody else will buy. New issues and redemptions MUST be paid for. OC
And the circus is back in town October 29-30. Bernanke has defended his decision to begin hinting at tapering in July saying that its far better for the market to know that tapering may occur - rather than being completely surprised. What a wank. He has been talking up the idea of tapering in order to get the market to react precisely as it did yesterday. Of course, that can't be proven and Bernanke denies it, but that has been his strategy and the results are obvious.
