Shaunt
New Poster
Cash: $ 0.45
Posts: 2
Joined: 09 Sep 2013
Location: London
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| IR & QE |
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Hi,
I'm trying to get my head around the following scenario.
First of facts:
- IR (interest rates) been low for a long time and there were worries that inflation will eventually kick in.
- QE does push the bond prices high and as the result yield of it drops and that result if price of dollar to be dropped and investors to move into stock to get a better yield.
Now the question:
- with interest rates rising, the bond investors will demand the yield to rise and and as the result some investors will leave the stock market, unless Fed will continue with the QE.
- What I am trying to anaylise is that if we have IR rising while Fed it continuing with QE, what long term effect will that have on value of $? infilation ?Commodities ? stock and bond?
Regards
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