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Don't fear the big, bad tapering

The appeal of risky assets continues to be strong and is not weakened by the prospect of tapering
Wednesday, November 20, 2013 - 06:00
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Not such a big deal: The effect of the US Federal Reserve's quantitative easing on bond yields is less impressive than people think and the reversal of the QE programme may equally have little impact. - PHOTO: AFP

THE ECB chose to surprise markets with a rate cut, stressing its commitment not to take any risk with deflation. We had expected them to hold off for another month, but were happily surprised by the decision. Meanwhile, US data, while still difficult to read because of the government shutdown,