Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

What Assets Perform Best During Quantitative Easing?

By

A look at a variety of assets to see how they responded to QEs and Twists.

PrintPRINT
MINYANVILLE ORIGINAL The Fed has done it again. Over the last four years the government has embarked on a variety of different stimulus programs. The Fed's main programs have been Quantitative Easing (QE), Zero Interest Rate Policy (ZIRP) and Operation Twist. ZIRP isn't anything more than a glorified jawbone, so we won't spend any more time analyzing it. Some people have lumped the Operation Twists and QEs into one big bond-buying stimulus category. But this is a mistake as the effects of these two operations are quite different and should be analyzed separately. This article will look at a variety of assets to see how they responded to the QEs and Twists.

Before we get started we must first define the programs' starting dates. There are a couple of different interpretations. November 25, 2008 is when the Fed announced QE1. The Fed started buying bonds the following week. The November 25 date is by far the most commonly listed as the start of QE. QE1 ended in March 2010. The Fed gave an extremely strong hint for QE2 in Ben Bernanke's infamous Jackson Hole speech on August 27, 2010 but the Fed didn't officially start buying bonds until early November. We'll use the August 27 date. QE2 ended June 2011. The Twists started on September 21, 2011.

Now that we have gotten the formalities out of the way, let's get right to the data:


< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE