Global Shares too Reliant on Fed Moves? (Reuters)
After the Fed’s surprise decision on Wednesday not to taper its $85 billion a month in stimulus, global markets took off on Wednesday and Thursday, ending the week at five-year highs. Yet, continued gains based almost solely on the actions of the Federal Reserve have some analysts preaching caution. According to Uwe Zoellner, head of European equities for Franklin Templeton, “This should not be and must not be [the] base for stock price moment… The market at some point later in the year might get ahead of itself…” So where does that leave independent investors — waiting for the October Fed meeting, it appears.