Part 4 of 6: Quantitative Easing (QE) 2010–2011: Why is the Fed printing money?
This video covers the history of quantitative easing relative to the Fed’s rationale and objectives of their money printing program. Investors and investment strategies can be formulated in a more effective manner if you understand credit cycles, balance sheets, the wealth effect, the reverse wealth effect, assets, debt levels, and their impact on the financial markets and asset prices. If we understand why the Fed is printing money, we can more accurately anticipate the possible impacts on the financial markets, investing, the dollar, and our purchasing power. Chris Ciovacco, of Ciovacco Capital Management, provides QE 2 commentary and analysis related to the Fed’s quantitative easing strategies, asset price inflation, lending, borrowing, loans, and interest rates. The housing market and mortgage rates may be impacted via inflation and an expanding money supply. The brief video gives investors a unique insight into the global economy and finance.
Below is part 4 of the 6 part series, this link will take you to QE Video Part 5.
Terms of Use. This video/article/blog contains the current opinions of the author but not necessarily those of CCM. The author’s opinions are subject to change without notice. This article is distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. The charts and comments are only the author’s view of market activity and aren’t recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations aren’t predictive of any future market action rather they only demonstrate the author’s opinion as to a range of possibilities going forward. All material presented herein is believed to be reliable but we cannot attest to its accuracy. The information contained herein (including historical prices or values) has been obtained from sources that Ciovacco Capital Management (CCM) considers to be reliable; however, CCM makes no representation as to, or accepts any responsibility or liability for, the accuracy or completeness of the information contained herein or any decision made or action taken by you or any third party in reliance upon the data. Some results are derived using historical estimations from available data. Investment recommendations may change and readers are urged to check with tax advisors before making any investment decisions. Opinions expressed in these reports may change without prior notice. This memorandum is based on information available to the public. No representation is made that it is accurate or complete. This memorandum is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities mentioned. The investments discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is not necessarily a guide to future performance. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. All prices and yields contained in this report are subject to change without notice. This information is based on hypothetical assumptions and is intended for illustrative purposes only. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.