How fearful should we be of the 'taper-talk'?

The quandary du jour of investors seems to be: “What do I do if central banks begin taking their foot off the gas pedal?” The market moves in May and June, when it seemed that the US Federal Reserve would eventually slow its asset-purchase programme, have left many wondering where to go for opportunities or protection. It is my belief that investors have already been hit by the prospect of Fed tapering and there is no need to fear the actual start of tapering. Whether it is quantitative easing (QE) or credit easing, the programmes work a lot like typical central bank actions: the central...