So far we have seen a little bit of short covering and muted euphoria in the markets, but I think that once participants realize that the Fed is not tapering, it will cast a terrible pall over what they see as the state of the economy, and I think we could see a fall in the markets.
Today one of the most highly respected fund managers in Singapore spoke with King World News about the most frightening takeaway from yesterday’s historic Fed decision. Grant Williams, who is portfolio manager of the Vulpes Precious Metals Fund, also discussed the impact of the Fed’s decision on major markets such as gold. Below is what the the acclaimed fund manager had to say in this fascinating interview.
Williams: “Yes it did, Eric. I’m not sure it should have, but it’s a question of degree. People were shocked the Fed was not going to taper $10-$15 billion per month, which would still have left them with $70-$75 billion of QE each month, and this is still an awful lot of money to be printing out of thin air.
But the fact that the Fed didn’t taper sends all kinds of terrible messages about the state of things, and I suspect it will take the markets a couple of days to digest that reality….
Read the full article at KING WORLD NEWS
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