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Wednesday, September 18, 2013

FOMC QE3

We have seen both side moves of market on 17/09/2013, one of the reason for that is QE3 tapering Federal Reserve Meeting at USA for QE3 tapering as USA growth is in line which attract them to take this step.

First those who not know about QE3, I am briefing you all:

When USA economy was in recession phase, government release Quantitative Easing 3 package which is popularly know as QE3.
In that package, USA buy bonds from citizen and available in economy which had enhance money supply in economy and that helps to USA economy to boosts again. And because of that we have seen from last many results and figures of USA economy comes positive.
Those money supply which enhance by USA, which invested among to the emerging economy such as India, China, Thailand, etc. so that FIIs of USA had much invested among our stock market so that our stock market had shows some rosy picture.

But Now what if QE3 tapering start----
It means that USA government will start selling those purchased bonds so that all investors who had invested among our emerging economy, for that FIIs have to withdraw invested money in market of emerging economy. So that its fear of suffer those stocks which have FIIs holdings.
All those FIIs of USA money they compulsory have to withdraw from our market.

Now these fear is prevailing in to market which prevent investors/trader to make positions.


So I advice to keep your safe-side and not go into market with high level of risk.
Meeting is arrange on 17/09/2013 and 18/09/2013, Its a two days meeting.

So now all eyes is observing closely & waiting to outcome of meeting for QE3 tapering.....

Visit following link for brief of Ben Bernanke (Federal Reserve Board Chairman)

http://www.youtube.com/watch?v=Lmd_CDwBXFs

Thanking You For Reading.....

Enjoy Market Moves, Update yourself.



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