Tapered Not Stirred – By Bryan Dooley, CFA During various periods of time throughout history, financial markets have often been driven by one major swing factor which can usually be boiled down to a particular word or phrase. Over the past few years the pivotal buzzword has been Quantitative Easing or “QE”. The very mention of the two letters “QE” in the press, or any its various iterations were sure to send markets flying in either direction. Essentially, QE has been the central bank’s way of playing its full hand. In an attempt to resurrect the U.S. economy from the aftershocks of the Great Recession, the Fed created QE1, 2 and 3. On the back of these aggressive stimulus measures the S&P 500 stock market index soared 146% from its bottom in March of 2009 to a recent new high in May while bond yields fell to record lows.
Posted on: Tue, 02 Jul 2013 13:29:52 +0000
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