Stock market crash qe3
Despite all of its pops higher and lower, the stock market only looks volatile over the past 14 months or so. Equities are almost right where they were when the market closed on Oct. It is, of course, the very day the Federal Reserve announced it had concluded the third round of its massive money-printing operation known as quantitative easing.
The Fed had been using its digital printing press to gobble up bonds, an operation that in turn was helping drive liquidity and boost asset prices in hopes of goosing economic activity,. Read More More market trouble is just around the corner. The result was an anemic economic recovery but a stunning rise in stocks — percent in all off the March financial crisis lows.
Since that hallowed date? The market was trading Tuesday within a couple points of where it was the day the Federal Open Market Committee announced it was cutting off the market's lifeline. These levels have been breached before, most notably in August , but the recent trend of lower highs is saying something about risk appetite," Citigroup analysts said in a note Tuesday.
Robert McHugh | bozirixejiwi.web.fc2.com
Sure, there have been peaks and valleys since the Fed took away the QE portion of the punch bowl. But stocks have been trapped in a pretty vicious range post-QE3, plunging amid geopolitical turmoil, fears of a hard landing in China and tumbling energy prices, then turning higher again after the storms temporarily passed. Indeed, the market has backstopped the losses.
QE3 R.I.P., What It Could Mean for Stocks — Money and Markets - Financial Advice | Financial Investment Newsletter
Read More The Fed in THIS is what to watch out for. Since the end of QE, the Fed has sought to begin the other step towards policy normalization.
At the December meeting of the Federal Open Market Committee, the central bank approved the first hike to its key funds rate in more than nine years. Expectations differ on what happens next: Fed officials, through their individual projections, expect the FOMC to hike four times this year. Market participants, though, doubt that will happen, with expectations now for two or three hikes. They may not be able to.
Stocks, more than housing, seen as initial QE3 winners | Reuters
Fed officials appear cognizant of the effect loose policy has had on financial markets. Recent statements from senior members that had a hawkish bent have helped contribute to the instability that has marked early trading. The question, then, will be whether the Fed can maintain that resolve should the market continue to show the inability to grow without the Fed's largesse.
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Register Log In Profile Email Preferences PRO Sign Out. Not for this stock market Jeff Cox JeffCoxCNBCcom. What's next for the Fed? That date may ring a bell. The floor of the New York Stock Exchange at the closing bell on Oct. The Federal Reserve phased out its bond purchasing program while keeping interest rates near zero for a "considerable time.
But there has been little to spur any lasting gains. THIS is what to watch out for Since the end of QE, the Fed has sought to begin the other step towards policy normalization. Jeff Cox Finance Editor.
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