This afternoon, I read a financial magazine which carries an interesting interview article with an authority who believes that the US Federal Reserve may unveil QE4, or Quantitative Easing phase 4 in time to come.
According to the interviewee, “Operation Twist” was a measure by the US Federal Reserve to combat the US financial problems between QE2 and QE3. The interviewee noted that “Operation Twist” will expire in December this year and hence there is some likelihood that the Federal Reserve will continue the modus operandi of “Operation Twist” in another form which may be QE4.
Hence, QE4 will take the form of buying of long-term treasury bonds and selling of short-term treasury bonds, akin to what “Operation Twist” is about. On the converse, QE3 is about buying of Mortgage-Backed Securities.
After reading this article, I feel nonchalant. As what we have seen, the global stock investment fraternity seems not ......
