Whether it's "fair" or not, the Fed got blamed for inflation after QE4.....TIL that the COVID-era recovery was fueled by round four of QE. I assumed that QE had ended much earlier.Yes, been watching that too.... thanks for linking...It's not really an argument, but as a fact of data, developed ex-US (VEA) has outperformed SP500 (VOO) since October 2022:
https://www.portfoliovisualizer.com/bac ... WvZ0upifxL
It is an interesting observation in the context of the below Argument - which has already been captured.
"QE (2008-2022), coincided with a period of extreme US out-performance - but it has ended."
I guess my follow-up question to this would be: Would there be a fifth round of QE if the US market started underperforming again? What factors would prevent easy money from the Fed from being the "new normal?"
Not saying this would prevent a "QE5", but remember that QE began as an experiment in 2008....
And as long as the experiment didn't seem to have any negative consequences, they kept doing more of it, (e.g. MMT narrative, etc)
If push came to shove, and with the genie now out of the box, they may do it again anyway... But IMHO it will be a harder decision for them next time....
Statistics: Posted by CraigTester — Fri Jan 26, 2024 8:57 am — Replies 4347 — Views 437617