What If The US Fed Decides to Taper on December 17-18 FOMC Meeting?

Update: December 19, 2013

The Federal Reserves decided to start tapering by January 2014. This means that the monthly $85Billion bond-buying will be reduced to $75Billion. Contrary to many, the taper resulted to record high in market indexes upon knowing FED FOMC decision of tapering. 

With the positive reaction of global markets, will I trade short-term?





To me the question only matters most if I am a trader. I don't trade. I only invest long term. 

But I am contemplating to do a short-term trade. I give myself a 2 to 3 days of contemplation whether to trade or not. And my action depends largely on what decision the Fed would come-up on December 19 (December 18 in USA). It is either they would taper the quantitative easing (economic stimulus) or not. 

Tapering is what they call when the Fed gradually reduce its bond purchase from the USA Treasury. The Fed bond-buying in the amount of $85 Billion dollars monthly from the US treasury is meant, they say, to stimulate their economy. 

Philippine stock market is tied up to what is going to happen in two days from now. Most of what might happen in the PSE depends on whether there is a taper or none. In either case I have to be vigilant as part of my contemplation whether to break from my investing to become a trader for a quick time only.

Meanwhile, investing is different from trading according to what I've been thought. Investing is long term. Trading is not. 

What I can do mostly is to just react accordingly.