Sunday, May 25, 2014

Full risk reduction QE3




Some economists and asset managers U.S. funds believe that the stock market is waiting for the collapse , if the Fed completely curtail its incentive program , analysts TeleTrade.


Volume incentive markets , which was created because of the drop in interest rates was such that a gradual reduction of the current stimulus could drop markets. Probability of this outcome is quite high , since the growth of the money supply greatly exceeds GDP growth , which is so very sluggish .


Such as Nasdaq Composite indexes and Russell2000 already stumbled , and this, according to analysts TeleTrade, may well be a harbinger of problems in the S & P500 and Dow Jones. Market situation is very reminiscent of the period when Alan Greenspan , when a period of low interest rates and their subsequent growth followed by collapse . As the amount of stimulation continues to shrink by 10 billion dollars each month and must be reduced to zero at the end of the year, a clear understanding of how markets behave yet.



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