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Unraveling QE

1,301 Views | 4 Replies | Last: 6 yr ago by LOYAL AG
Ag92NGranbury
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AG
anyone else nervous as the fed begins to unravel QE?

it is about 12k per every man, woman, child and nondisclosed gender types living in the united states.

$4.5 trillion is a lot of cash-ola...

hope it ends well
SparkE
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If they do it right - no problem. I'm just trying to remember the last time the fed actually did something 100% right

My fixed income is entirely fixed rate CDs and short term corporates, split about 50/50. I'm getting about a 2% yield with a duration of about 1.75 years and I'm happy with that for now.

Short duration CD yields are more attractive than treasuries right now, so if you can split your fixed income allocation into FDIC insured CDs instead of treasuries + a balance of corporates and whatever else you like, you can do a little better than you otherwise might with a total bond fund or similar.

The real risk is if rates rise faster than anticipated. Bond fund NAVs would not be the worry then, but rather what the equity markets would do in response.
Rice and Fries
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Higher interest rates means higher cap rates which means lower values for real estate.
RoseRichAg01
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Pretty sure that the bird lady has this.

Right?
Buck O Five
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AG
Bernanke has suggested that the Fed will raise rates before pulling back on QE. Seems risky, but maybe they want to have the tool of lowering rates in their back pocket in case the economy hits the skids again in the moderate term.
LOYAL AG
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AG
The money supply has grown for almost 50 years and you think they're suddenly going to reign it in?
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