MarketWatch: Don’t Fall Victim to QE Trap
Posted by Larry Doyle on January 13th, 2014 9:08 AM |
I have a commentary running today on MarketWatch that addresses some perils and potential pitfalls stemming from the tapering of the Fed’s quantitative easing.
4 Ways The Fed Taper Puts Your Money at Risk: Don’t Fall Victim to The Fed’s QE Trap
“I don’t know what they are, but I know where they are!”
I had to chuckle when a fellow trader with whom I worked uttered that remark about the markets in which he trafficked. In so many words, he was admitting that he focused almost entirely on daily flows and technical developments within his market sector, while paying little attention to the underlying fundamentals of the securities themselves.
Ignoring fundamentals is dangerous. (more…)
Tags: Federal Reserve policy, Federal Reserve taper, generating income, lack of liquidity in the marketplace, Larry Doyle In Bed with Wall Street, liquidity in interdealer market, perils of Fed taper, QE trap, quantitative easing trap, selling structured products, steepening of yield curve, what will happen when Fed taper begins
Posted in General, quantitative easing | 1 Comment »
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