“The Bank of Japan sent shock waves through financial markets by announcing it will increase its bond-buying economic stimulus program, the biggest development on a day that put an exclamation point on a volatile month for global markets,” David Parkinson wrote in a Globe and Mail article last week.
Parkinson continued, “The central bank’s surprise move was in stark contrast to this week’s decision by the U.S. Federal Reserve to end its own bond-buying program (known as QE3) in light of the strengthening U.S. economy. Japan’s move sent investors flocking to the U.S. dollar, causing ripples through other financial markets. Stocks rallied, with the Dow Jones industrial average and S&P 500 indexes reaching record highs. But commodity prices tumbled, with gold falling to a four-year low and oil dipping back toward $80 (U.S.) a barrel. Other currencies slumped, including the yen, the euro and the Canadian dollar.”
Read the full article here. | Raymond Matt, CFP, CLU, TEP, CHS
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