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Incoming Wave Of Worldwide QE Is Not Going To Work
Investmentwatch
If anyone wants my thoughts on this, and it’s probably worth what it’s costing you, here they are…
The Fed does NOT want to appear political. Not to say they aren’t political, but they do have to work with both parties in Congress, so they hate to change policy in the midst of an election cycle for fear of alienating one side of the aisle.
That said, if it means putting a bandaid on a potential collapse of a major U.S. Bank, or the economy as a whole, I think they will do it regardless of the political implications, because I truly believe their number one priority right now is staving off a financial collapse until after the November elections.
It’s interesting to me that China announced their new QE program a couple of weeks ago, then the ECB announced theirs this last week, that is an indication that the FED won’t be too far behind, as these things are usually coordinated.
So let’s assume there will be a QE3, or whatever number we are really on, before the November elections. What should we expect? First, expect a market rally in equities and commodities. Some QE has already been priced in, but if they make a big enough splash you could see the DOW at 15000, Oil at $150.00 (even without a war in the Middle-East) and Gold at $1900.
continue at InvestmentWatch:
http://investmentwatchblog.com/the-incoming-wave-of-worldwide-qe-is-not-going-to-work/#.UE1pWlGPWUk
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