Well, Ben Bernanke went further than a lot of people expected last night and said, as well as reiterating that QE should slow this year, that it should stop entirely by the middle of next year (assuming the US recovery continues). This has spooked the markets with the Dow down 200 points last night and the same again so far today. We’ve had a good run lately, so we are probably due a correction anyway, and I can see the Dow falling below the 200 day moving average to around 13,500 (about 12%). I don’t think there is anything too much to worry about; this is just part of the normal ebb and flow of the market.
This would probably bring the FTSE down to around 5,400. I would regard that as a buying opportunity.
