We always stress the importance of fundamental analysis on our main website and informative videos we produce for our traders and followers, but today’s news illustrates the importance of this aspect of binary options trading in a grand real-life paradigm of immense proportions.
One of the major market moving events of 2013 had been the Fed’s decision to taper its Quantitative Easing programme. The decision, as you probably remember, was preceded my rumours and false alarms and vague language of “more growth” and “stability” in the U.S. economy that kept investors and traders on their speculating toes.
When the decision finally did come last month, at the end of the December FOMC meeting, not everyone expected it, not even the “ol’ boys” of trading. Money manager Bill Gross, known as the “Bond King” misjudged the Fed’s intentions to begin scaling back the economic stimulus in 2013, causing the Pimco Total Return Fund (PTTRX) to decline the most in twenty years.
And the billionaire was not the only to commit the error. The biggest funds at Pacific Investment Management Co. also followed in the same footsteps including in offerings of non-traditional bonds that have been especially designed to protect investors from interest-rate fluctuations.
This is not to argue that you should heed the advice of professional traders and money managers. What we rather like to emphasize is that one should always follow the financial and world evens closely and come to his own conclusions and predicted aided by the advice of experts, but without blindly following them.
