QE3 tapering delayed

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Was pleasantly surprised by the Fed's decision last night to delay tapering. Which means its US$85m monthly bond purchases will be maintained. The best short term scenario I would expect.

 Why did the Fed delay tapering of bond purchases?

There might be a few possible reasons, but I would think that the main reason for me is unemployment and inflation. Both are too inverse. Inflation is still very low and employment still very high. There are no signs of reversal for both in near term. Hence it will be quite silly for the Feds to do anything to further worsen the general outlook of the market.

If the general economical outlook shows improvement from now till December(next Fed meeting), perhaps a reduction in the volume of asset purchases will be favored. Until then, we should continue to enjoy a short term bull run. To each his own.

STI surged and hit my target at 3250 and Reits in general appreciated from the news today.

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