Major Asset Class Returns Since the Fed’s Taper Announcement

When the Federal Reserve first dropped the hint last year at the end of May that it intends to start reducing the pace of its monthly bond-repurchases, major equity indexes, especially those in emerging markets, dropped like hot potatoes. The mere thought of the “free money era” dwindling to an end was enough to spark what many called the “taper tantrum”, which was largely a fear-induced sell-off predicated on the misconception that a rate hike was around the corner [see The Fed Effect: How Monetary Policy Impacts Your ETFs]. The dust settled as 2013 neared an end and U.S. equity indexes flirted with all-time highs, only to give way to another round of steep selling pressures following the Fed’s official announcement in mid-December that it would in fact start tapering in 2014. Despite having six months (first taper hint came on 5/22/2013) to digest the real motivation behind the Fed’s decision to [...] Click here to read the original article on ETFdb.com. Related Posts: Ten Unexpected Observations On YTD ETF Returns Free ETF Trading: Comparing All The Options ETF Winners and Losers During the Shutdown Picture Edition: Major Asset Class Returns From The 2009 Bottom Comparing The Performance Of The World’s Largest ETFs