At some point during Fed QE, the markets started reacting positively to bad news. In our view, this is when things started going wrong. Bad news became good news for asset prices, as markets expected more QE by the Fed. Asset prices were increasingly deviating from fundamentals, as the markets were trading the Fed instead of the economic reality. This was clearly not sustainable.
You can read the rest @
http://www.bloomberg.com/news/articles/2015-10-09/bank-of-america-here-s-the-precise-moment-when-we-should-have-known-qe-went-wrong
Too bad the Fed couldn't figure this out.
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