What We Learned From The First Week After QE


Photo: US Air Force

From SocGen’s Kit Juckes, a quick comment on where things stand a week later after the Feds QE announcement:Today’s lack of news (a couple of central bank speakers on both sides of the Atlantic, and UK public sector finance data) mean there is a risk the week will end quietly. The week taught us the TIPS market is afraid of an inflation risk that I can’t imagine, QE provides a more durable boost to the US equity market than almost any other, that investors were pretty overweight both EM and ‘carry’ assets into this month overall. As well as being short EUR and AUD! In short, economic data were poor, but not bad enough to completely outweigh the effects of easy money.

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