Tapering has started. What it means for the stock market?

Eldenminaj
2021-11-04

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!

# 分享我的交易策略

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。

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评论（103）

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  • Tracccy
    ·2021-11-04
    🤣Thank you very much for sharing, but I prefer science and technology companies. Hey, hey, they are the ones who have the ability to create more wealth. Apple and Tesla are good examples, and they can't beat them even in an economic downturn, so buy them.
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    • Eldenminaj回复joker1: 
      Agreed with u. tesla just a bunch of hypes. not making any proper money. Apple on the other hand has huge free cash flow. sadly both are overvalued now
      2021-11-07
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    • joker1: 
      not gonna bet against tesla, they have a cult  behind it's stock,but tesla does not move based on its fundamentals, more on hype.apple's overvalued but at least it's consistently making tonnes of $$.
      2021-11-06
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  • Lifestyle
    ·2021-11-07
    Market has priced in tapering. What’s important is when we are seeing a rise of interest rates 🤔
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  • JackPowell
    ·2021-11-04
    So what do we do? Can I buy all the stocks? Or buy those hot stocks, don't you think buying them now is fuelling the rally? But if it falls, it will certainly be very serious, which is still too risky for me. I prefer sound investments.🤣But thank you for your advice. It's helpful for me.
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  • BlancheElsie
    ·2021-11-04
    That's very accurate, but what about other aspects? You can't ignore the overall economic situation and the impact of the epidemic on the economy and the stock market, so watch again, don't be in such a hurry, stay calm, and good luck!GODDDD LUCK!!
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  • KYHBKO
    ·2021-11-07
    US 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.
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  • EvelynHoover
    ·2021-11-04
    Over the past year, the excessive rise in share prices caused by inflation will be improved. Inevitably, the share prices of many companies will fall.
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  • ChrisColeman
    ·2021-11-04
    Powell is the best guy for market. and if the jobless still not improve, the mount of Treasurys purchase reduction may change. whatever, everything is good for $SPY
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  • Eldenminaj
    ·2021-11-04
    @BlancheElsie Other aspects includes the trillion dollars of debt US is in and how it may backfire one day?  Let play safe. Time in the market beats timing the market. pandemic is over. time to buy!
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  • Eldenminaj
    ·2021-11-04
    @JackPowell Buy the S&P500. its hard to beat the market. S&P500 has outperform almost everyone in the past 10 years, including Warren Buffet. Its best to buy a low cost index fund
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  • MurrayBulwer
    ·2021-11-04
    This will be a correction in the stock market. Wait and see, many stocks will fall, and the negative effects of inflation will be shown.
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  • LesleyNewman
    ·2021-11-05
    I would like to know which stocks will have more volatility? Which plates will be hit harder? This is only an overall trend, there are still a lot of people and many enterprises can make money.🤑
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  • breAkdaWn
    ·2021-11-07
    pillow talk with yellen . all secrets will be known
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  • Eldenminaj
    ·2021-11-04
    @EdisonTracy Sience and tech companies are soooo overvalued now. its not worth it to buy.
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  • BartonBecky
    ·2021-11-04
    Wow,bro, really appreciate your sharing. I think so, too. Let's do it now.😋
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  • BlancheElsie
    ·2021-11-05
    Thank you very much for sharing, which coincides with me.😊
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  • ddhjnh
    ·2021-11-09
    ，
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  • kgb
    ·2021-11-09
    可以的
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  • TOM来自地球
    ·2021-11-09
    66666666
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  • 名侦探巴菲特
    ·2021-11-09
    [强]
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  • wjtks
    ·2021-11-07
    好
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