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QE 2 is ending in June. It would probably help your trading to recognize what affect this program has had in various markets you might invest in.
In the chart below, I have outlined the effects the Quantitative Easing programs have had on various asset classes. It is easy to recognize the beneficiary of easy money. Looking ahead, I expect these asset classes to continue to work in a similar fashion. These asset classes behave in a particular way with stimulus, and without stimulus.
Looking at how strongly correlated US Treasuries are to Quantitative Easing, I would not want to own TBT here unless for some reason treasuries break down here.
QE 2 is ending in June. It would probably help your trading to recognize what affect this program has had in various markets you might invest in.
In the chart below, I have outlined the effects the Quantitative Easing programs have had on various asset classes. It is easy to recognize the beneficiary of easy money. Looking ahead, I expect these asset classes to continue to work in a similar fashion. These asset classes behave in a particular way with stimulus, and without stimulus.
Looking at how strongly correlated US Treasuries are to Quantitative Easing, I would not want to own TBT here unless for some reason treasuries break down here.
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