With the looming
end of Quantitative Easing in the United States, the Fed shows no signs of altering its balance sheet and will maintain its size going forward (over $ 4 trillion).
The big push for utility stocks came from interest rates, which unexpectedly dove in 2014 as the Federal Reserve's
end of quantitative easing didn't have the rate - raising impact that most investors had believed it would.
Achilleas Chrysostomou, economist at Standard Chartered, said in a research note on Wednesday, that the European Central Bank is «to begin preparing the market for
the end of its quantitative easing program by removing the reference to «downside risks» to growth at its 8 June meeting.»
In Sweden, one of the Riksbank's deputy governors said the bank should start planning for how to deal with
the end of its quantitative easing program.
The end of quantitative easing (QE for short), one of the strangest financial experiments in recent history.
Though «the ECB has been under - purchasing Portuguese bonds,» he said, «it is likely to be relatively less badly - affected by
the end of quantitative easing than others, such as Italy.»
If there's anything surprising about her ascendency, it's the fact that her legacy as America's central banker might be defined by the issue of too - big - to - fail as much as
the end of quantitative easing (QE), the Fed's current asset - purchase program.
How are advisors reacting to rising interest rates and
the end of quantitative easing?
The onset of price decline coincided with a stronger U.S. dollar beginning in June 2014 that may be related to
the end of quantitative easing and to an improving U.S. economy.
Since
the end of quantitative easing in the U.S. in October 2014, lackluster global economic growth and a marked divergence among central bank policies has led to a difference in the real and forecast interest rates in one country versus another.
You can point to any number of items that the mainstream media is whipping up into a frenzy — Ebola,
end of quantitative easing, commodity prices falling, European woes.
ECB president Mario Draghi said that rates will stay at present levels well past
the end of the quantitative easing program, with the central bank keeping open the option of increasing the size and duration of QE if necessary.
The end of quantitative easing was supposed to signal the start of market volatility.
So it makes sense that over half of advisors have adjusted their clients» portfolios in anticipation of higher interest rates and
the end of quantitative easing.
When «the market» begins anticipating
the end of quantitative easing, bond prices should drop like a stone.
The big concerns for the coming year are
the end of quantitative easing, which could have a negative impact on local markets, as well as a lack of investor trust in the financial system.
The U.S. has often led moves in global bond yields, such as during the «taper tantrum» of 2013 when then Federal Reserve Chairman Ben Bernanke sparked a global bond market rout by signaling the beginning of
the end of quantitative easing.
Despite
the ending of quantitative easing by our Federal Reserve, 10 year treasury yields are way below two percent despite robust GDP growth in the back half of 2014.
The Fed will make its next announcement on interest rates and provide some clarity on
the end of quantitative easing, the stimulus program of massive bond buying that kept long - term rates low and encouraged a rally on stock markets.
In an era where interest rates seem poised to go up significantly (with
the end of quantitative easing, etc.), is this wise, or even safe?
As a final note, let's watch
the end of the Quantitative Easing from the Fed.
They are looking at
the end of quantitative easing, but are not yet considering the beginning of quantitative tightening.
Historically low mortgage rates continued: Mortgage rates declined despite
the end of quantitative easing this year.