How will US markets cope with QE tapering?

US MARKETS

The modest growth America's economy has experienced in the first half of 2013 is mainly down to bright spots in the housing and manufacturing sectors, but is it enough to limit the damage that could hit the stock markets when QE is tapered? Kully Samra, UK branch director at Charles Schwab, takes a closer look.

Following the strong uptrend in stocks over recent months, a correction for the US market has been anticipated. The “soft patch” America is currently experiencing is expected to be relatively short-lived as economic data continues to point towards modest growth and any heightened volatility and the possibility of pullbacks should not distract from the longer term prospects for the economy. For example, as the second half of the year approaches, there continues to be an improvement in the US housing market, a long-term manufacturing and US domestic energy renaissance, as well as surplu...