World stock markets dropped Friday after the U.S. Federal Reserve chairman disappointed investors that there would no immediate action to jump start the world's largest economy, wiping out any gains from China's surprise interest rate cut.
Most people were surprised by the Federal Reserve's announcement to begin tapering its quantitative easing program on Wednesday. Specifically, it said it would reduce its monthly purchases of $85 billion worth of bonds by $10 billion.
There is so much to be said for timing.
That truism was never more evident than during the past 72 hours when equity and bond markets roiled around the world triggering a massive selloff in almost every sector after U.S. Federal Reserve Chairman Ben Bernanke said the central bank could commence tapering off its bond-buying program later this year and likely bring it to an end by the middle of 2014.