Posted by calvintaneng > 2021-08-13 16:48 | Report Abuse

This news is especially bad for frothy tech stocks

Sell tech stocks if Fed withdraw pump priming

Posted by stockraider > 2021-08-14 09:38 | Report Abuse

Basic Economics 101 mah!

QE means more money Printing or money supply by FED....means interest rate low loh!

When Taper...means less money supply.....thus interest should be up mah!

The last 2 months interest rates has been coming down instead mah!

For the General Public & business people...who cares whether...QE or Taper leh ?

Unless it affect them mah!
It affect the people in the form of lower or higher interest rates mah!

U ASK YOURSELF HOW MUCH USA CAN TAPER LEH ??

CURRENT INTEREST RATES;

1 MTH- 0.08% PA
10 YEAR- 1.2% PA
30 YEAR - 1.9% PA

STOCKS DIVIDEND ARE YIELDING AVERAGE 2.0% PA MAH!

AVERAGE PE 24X OR 4.16% PA EARNINGS YIELD MAH!


Do not simply panic...when taper mode loh....bcos the tapering will be gradual....as right now the short term interest rates now are ridiculous low for example 1 month 0.08% pa mah!

Only when 1 month interest of USA normalise to say 1.0% pa....then extreme caution should be exercise mah!


U look at apple share price still up today mah!

Very steady loh!

Year Todate Apple up almost 20% mah!

PE around 29x, very reasonable when u look at interest rates of less than 0.1% pa mah!

Apple is a bluechips & a growth stock mah!