The US Fed has decided to keep interest rates unchanged at least through the first quarter of next year.
This has been well received by investors and market commentators alike as most stock markets, including the JSE ALSI, have taken a tumble in recent days and such an accommodative stance by the Fed should instil some confidence back into the equity markets over the festive season to arrest further wholesale sentiment- driven selling.
Of course, this does not provide a guarantee of any sort and company fundamentals should still be a factor in determining the direction of share prices to a degree (they may go up and they may go down), although during this time of year, emotions tend to drive prices more than facts and figures and trading becomes thin allowing prices to move more easily even on small trades.
Hopefully then, we may see our share portfolios coming out of the festive season in mid-January a little higher than they are right now.
