FOMC Taper Surprise Creates Temporary Bullish Fervor

Morgan Stanley analysts Graham Secker, Ronan Carr, Matthew Garman, Krupa Patel and Hanyi Lim give their views on a European strategy after the surprise decision by the Federal Open Market Comittee to hold off on tapering. Broad impact of the FOMC decision The bullish fervor in the markets arising from the FOMC decision might be tempered down the line due to the continuing uncertainty from the on-off situation on tapering. In this situation Morgan Stanley (NYSE:MS) suggests investors should avoid getting distracted by the tapering debate and instead focus on fundamentals. Let fundamentals determine the direction of investment prices, the analysts…