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As was widely anticipated, today the Federal Reserve announced the end of its massive bond-buying program.

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The Fed Says Bye Bye to QE

As was widely anticipated, today the Federal Reserve announced the end of its massive bond-buying program.

As was widely anticipated, today the Federal Reserve announced the end of its massive bond-buying program. The Federal Open Market Committee (FOMC) announced that it would no longer purchase mortgage-backed and Treasury assets, also known as quantitative easing (QE), although it did so basically by omission.

While I think the Fed getting out of the money-printing business is a good thing for the overall health of the economy, when it comes to the short- and medium-term effect on the equity markets, things may not be so healthy.

Consider that since the Fed began the original QE in December 2008, stocks have risen substantially throughout every round of easing. Unfortunately, when the different phases of quantitative easing have ended (QE1, QE2, Operation Twist), stocks have suffered a substantive sell-off.

Read more about the impact of the Fed’s ending of quantitative easing at Eagle Daily Investor.

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Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert‚??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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archive

The Fed Says Bye Bye to QE

As was widely anticipated, today the Federal Reserve announced the end of its massive bond-buying program. The Federal Open Market Committee (FOMC) announced that it would no longer purchase mortgage-backed and Treasury assets, also known as quantitative easing (QE), although it did so basically by omission.

While I think the Fed getting out of the money-printing business is a good thing for the overall health of the economy, when it comes to the short- and medium-term effect on the equity markets, things may not be so healthy.

Consider that since the Fed began the original QE in December 2008, stocks have risen substantially throughout every round of easing. Unfortunately, when the different phases of quantitative easing have ended (QE1, QE2, Operation Twist), stocks have suffered a substantive sell-off.

Read more about the impact of the Fed’s ending of quantitative easing at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

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Global Elites Started The Russia Nonsense.

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Trump Puts British Intel Under Spotlight: ‘I Hope [Barr] Looks at the UK… I May Talk to PM…’

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Kassam Banned From Facebook on UK Election Day.

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