Since the U.S. Federal Reserve shocked markets last week with its decision not to scale back its monetary stimulus, the argument is building that taper may not happen at all, or at least not for a long time.
Investors have been fretting over the beginning of taper ever since Fed chairman Ben Bernanke first uttered the “T-word” in late May. The reduction in the constant flow of easy money out of the U.S. central bank panicked investors, prompting a broad selloff that saw emerging markets in particular take a beating.
Edward Dempsey, chief investment officer of Pension Partners, said despite intense speculation over when the tapering will happen, in his view it could get pushed out for some time.
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