Greenspan assurance on rates calms investors’ nerves

THE assurance by Federal Reserve chairman Alan Greenspan that any increase in US interest rates would be “measured” has calmed the nerves of investors but is not expected to lead to much buying conviction in the immediate term, say analysts. 

“People are waiting to see how things pan out and if the US economic performance agrees or disagrees with the expected hike in interest rates,'' said the head of research at a foreign stockbroking house. “Only then will investors know how to split their portfolios between equities, bonds and cash.''