In a past article, Buzz Words to scare Investors, I mentioned some of the buzz words in the financial media that are often used to scare away investors. In the past we have seen ‘Debt Ceiling’, ‘Fiscal Cliff’, ‘Sequestration’.
Recently, another word has been added to this list. ie. Tapering or Fed Taper. It is used to refer to the curtailing of the treasury bond purchase program by the US Federal Reserve.
Along with this, in the fall we should see the ‘Debt Ceiling’ buzzword come back to the limelight. Sequestration did not seem to have much effect on the stock market. Maybe ‘QE infinity’ had greater force. It will be interesting to see if some bargains are thrown up by Mr Market due to tapering!