General Trading Chat

Fed decision tomorrow night but BoJ decision comes in the morning.

How a ‘twist’ by the Bank of Japan could upstage the Fed

“The BoJ is potentially the more important market-moving event despite a history of under-delivering on expectations,” wrote McCarthy at Jefferies. “Were the BOJ to break with history and deliver on backing away from QE to foster a steeper curve, the bear steepener will resume in the Treasury market.”
 
The markets are not shaken :) Infact more sideways/range bound since June.
If not shaken then why global markets are moving sideways or range bound since such a long time. And what will happen now if FED announces a 25 bps rate hike tomorrow. It will be

DHARAM DHARAM
(vertical fall)
a blood bath in global markets
 
So liquidity reversal is something you don't fear?
You want to say that FIIs will take their money out of our market for mere 25 bps hike. Not a valid reason for their exit. My friend they are running our market, earning much much higher profit than this 25 bps hike. May be by FED move of an hike, they trap bears for a kill.
 
You want to say that FIIs will take their money out of our market for mere 25 bps hike. Not a valid reason for their exit. My friend they are running our market, earning much much higher profit than this 25 bps hike. May be by FED move of an hike, they trap bears for a kill.
I did not say that. A hike will show that Fed is on course to hike rates at regular intervals. So come December and you will have one more hike. Same for 2017. Market will start factoring in all these hikes and hence this panic.

If THEY start getting better return in their own country, then why will the liquidity come here - that too for a market trading at 23 PE without any earnings growth.
 

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