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For the 15 years through 2012, Laurent has outperformed the market with 16% annual returns, compared to 5% for the market. Laurent's international career has stretched through US and Europe. He earned an MBA from Boston University and an MS in Engineering from RPI.
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Longs, Shorts, and Mini-Skirts
  • QE To Continue 2 comments
    Dec 3, 2013 10:12 PM | about stocks: SPY, QQQ, QQQX

    The latest minutes from the Federal Open Market Committee reveal that finally the Federal Reserve recognizes that inflation will be tame for years to come. As I have been writing for years, I believe they have known that for a long time. I believe that they have been shadow boxing all this time to get people to fear inflation and to spur consumer purchasing.

    The take-away is that the Federal Reserve is unlikely stop QE anytime soon. The citizens are still not protesting the bank in buyout of the country, so Bernanke is not feeling any populist uprising. Also, the Tea Party is still licking the wounds inflicted upon it by the media from the last government shutdown, so fiscal responsibility is still not rising in Washington. So, so I believe we can expect QE and money printing to continue for at least the next six months.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: QE, Quantitative Easing, Bonds, Stocks Stocks: SPY, QQQ, QQQX
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  • jstratt
    , contributor
    Comments (2215) | Send Message
     
    I dont think anyone suggests that QE will end anytime soon. They may try to reduce their monthly purchases from 85 bil to 80 bil.

     

    What might be a question is whether the Fed can actually reduce bond buying without raising interest rates?
    16 Dec 2013, 04:17 PM Reply Like
  • ljsquid
    , contributor
    Comments (14) | Send Message
     
    Author’s reply » I actually believe that once the QE ends, the equity bubble will burst and people will move into bonds. So, I don't think that the rates will rise much.
    17 Dec 2013, 11:56 PM Reply Like
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