There is no Fed tapering imminent. They just voted last week to keep the $85 BLN/month flowing on a 9-1 vote.
During dot.com bubble, the short term interest rate was 5%+ in 1998 and 1999, and that didn't stop that bubble. The Fed only belatedly raised rates to 6% in 2000 when the bubble went parabolic.
The Fed is always slow to raise rates, and rates are at 0%.
It could be years before we are at 2% rates with FOMC incrementing 0.25% every quarter or so, and 2% rates is still very stimulative. Right now, the Fed isn't even talking about raising interest rates. They have only been talking about reducing the $85 BLN/month $$ printing, but even that is on hold as of the last FOMC meeting where they voted 9 to 1 to not taper.
The Fed still has the pedal to the metal, and have publicly stated they do not see a bubble anywhere (just like they said there was no housing bubble back in 2006-2007). Don't get shaken out of the market just because the Fed talks about tapering its $$ printing from $85BLN/month to $75BLN/month. The current environment is still very stimulative for stocks.
If there is a bubble, it won't pop because of the Fed. It will pop after the momentum is exhausted and it collapses from its own weight.
During dot.com bubble, the short term interest rate was 5%+ in 1998 and 1999, and that didn't stop that bubble. The Fed only belatedly raised rates to 6% in 2000 when the bubble went parabolic.
The Fed is always slow to raise rates, and rates are at 0%. It could be years before we are at 2% rates with FOMC incrementing 0.25% every quarter or so, and 2% rates is still very stimulative. Right now, the Fed isn't even talking about raising interest rates. They have only been talking about reducing the $85 BLN/month $$ printing, but even that is on hold as of the last FOMC meeting where they voted 9 to 1 to not taper.
The Fed still has the pedal to the metal, and have publicly stated they do not see a bubble anywhere (just like they said there was no housing bubble back in 2006-2007). Don't get shaken out of the market just because the Fed talks about tapering its $$ printing from $85BLN/month to $75BLN/month. The current environment is still very stimulative for stocks.
If there is a bubble, it won't pop because of the Fed. It will pop after the momentum is exhausted and it collapses from its own weight.