GAM's £1bn US man: Why end of QE2 will not derail markets

Greg Woodard, lead manager of the £1.4bn GAM Star US All Cap Equity fund, has said the end of the second round of quantitative easing in the US has already been priced in to equity markets.

As the end of the US Federal Reserve's second round of quantitative easing edged closer earlier this month, markets dipped, with the Dow falling from highs in May above 12,800 to around 12,000. A surge this week - amid Greece's acceptance of a harsh austerity package - has lifted them once more above 12,200 but they remain off highs. The S&P 500 has suffered a similar dent, dropping from a high of around 1,345 at the end of May to a low near 1,260. Despite the recovery, Woodard said he was not expecting markets to fall away when QE stops at the end of the month. The GAM Star US ...