March 10, 2016 at 10:14 am #18320
What does the Expansion of the European QE mean for the market? Listening to Bloomberg today they threw everything including the kitchen sink at the economy.
The market seems to like QE and money put into the market. And seems to be going up this morning.
But to me the only time QE happen is when the economy is in rough shape or trying to come out of a recession.
If this QE does not work they can do nothing else for the economy.
Is this setting up for a major bear market or will the markets just love the money, 20 billion being put in the market and take off.
Right now I am 70%-F and 30%-C. But I rarely have been positioned correctly for the market.March 10, 2016 at 9:54 pm #18321
I found following after looking at the link Kristopher posted on the other thread on unemployment/recessions, which may relate here: https://www.businesscycle.com/ecri-reports-indexes/report-summary-details/economic-cycle-research-ecri-shifting-eurozone-cyclical-prospects
I’m not a member so I can’t see the in-depth analysis, but they have some interesting articles/info that are accessible to all.
TS Paul may want to add link to Economic Cycle Research Institute (ECRI) web page https://www.businesscycle.com/home to the resource page as has info related to business cycle.March 11, 2016 at 12:38 pm #18324
All the markets seem to love the European QE. F fund is past it’s peak, and will continue to slide. If the Fed does not raise rates expect all stock funds to head upwards – until the next bad headline appears.March 23, 2016 at 1:59 am #18379
There probably isn’t much else the ECB can do – monetary policy can only do so much to stimulate the economy. What Europe (and all developed economies need) is a proper mix of monetary (central bank) and fiscal (government spending) policies. Unfortunately, politics in both Europe (as dictated by the German’s push for austerity) and the US (where all spending is apparently bad) dictate that the fiscal part of the equation will be left undone.
The TSP Allocation Guide www.TSPallocation.com
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