Market Review and Trends
The End of QE, What’s the Effect?
By Doctor Wealth  •  October 30, 2014
featured The Fed has finally ended quantitative easing (QE) as economic data has shown much improvement, especially the labor market. Unemployment rate has fallen to 5.9%, its lowest ever since the recession started. Huge Improvement on US Stock Market QE was basically buying trillions of dollars’ worth of long term bonds in an effort to keep interest rates low. This is turn helped to stimulate the economy, improve the labor market, increase spending etc. The effect of course had been huge on the stock market. The S&P 500 index rose 10% to 30+% during each of the respective QE programs. The end of QE is generally a positive sign for the economy as well, so the earnings of companies are likely to see even more improvements going forward. Bond Yields to Start Getting Attractive Bond yields have generally stayed low throughout QE, making them relatively unattractive compared to equities. Short ......
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By Doctor Wealth
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