Saturday, September 21, 2013

Why Do Markets Freak Out?

Economists do not expect the newest members of the Fed to scrap quantitative easing entirely. But even small shifts in policy can have large implications for markets and the economy. U.S. stocks have been on a roller coaster since the Fed broached the idea of scaling back its bond purchases later this year. Investors are obsessed with when it will begin and how large it will be.

Uncertainty is the bugbear of all markets.