Experts tackle burning questions
The Sunday Times Invest Seminar presented by DBS Bank on May 10 covered investing ideas and the economy's outlook. Here are some questions posed by the audience. We ask our panel of Money Desk journalists and DBS Bank experts to answer a selection of them. Visit http://www.straitstimes.com/news/business for more.
Published on May 18, 2014 7:28 AM
Q: Barring any unexpected shock in US economic recovery, do you think that the equity market has fully priced in the ongoing QE tapering?
A: The tapering of quantitative easing is already well understood in the market. Indeed, there is already widespread expectation that the US Federal Reserve will likely continue on its current pace of tapering and exit from quantitative easing around October this year. A greater source of doubt is the timing of the first Fed rate hike. Expectations of the timing of the first policy rate hike will likely be in constant flux over coming months, depending on US economic data.
Senior Vice President, CIO Office, DBS Bank, Manish Jaradi
Q: On "buy good, buy low and keep": If there is an impending correction or when the market plunges, should a fundamental investor sell his shares and buy them back later, or should he still hold on to them?
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