Fed statement analysis 19 June 2013
FOMC statement & press conference will be the turning point today
It'll decide the market's direction
1 month ago, the Fed clearly stated that they will not start QE tapering too soon as it will hurt the economy, but might start it a little sooner if the economy is strong enough
We do not understand why people are confused & say that the Fed isn't being clear
Did they panic because of the word "QE tapering"?
The over-hyped "QE tapering" doesn't really matter in the long run because the stock market will be strong enough when the Fed slowly reduces its support in the form of QE
The stock market won't collapse because of that, unless investors themselves start a huge sell-off out of panic & fear
That'll present a great opportunity for smarter investors to buy value stocks at low prices & the stock market will eventually recover anyway
Fed statement forecast 19 June 2013:
The Fed will not announce QE tapering today
The Fed will try to calm investors down but also warn them again to be prepared as they can't depend on QE forever so that there'll be less impact on the market when they actually start QE tapering
The market will still go up in the long run, might be corrected due to overbought, but is expected to recover
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