Will QE3 trigger major new bull run in equities?

Natalie Kenway

Global markets rallied at the end of last week as the Federal Reserve unleashed QE3, prompting some investors to call the start of the next major bull market in equities.

Previous rounds of QE have seen short-lived rises in stock markets but, combined with the ECB’s bond buying programme announced the week before, some commentators expect to see a prolonger equity rally. Ben Bernanke announced the Fed will buy $40bn of additional mortgage-backed securities per month as well as keeping the federal funds rate “exceptionally low” until 2015. Coupled with Operation Twist, it is hoped this will strengthen the housing market, and, crucially, boost employment and economic growth. Economists have voiced their surprise at the extent of this third round of open-end...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Investment

All the latest from the world of ESG investing

ESG Blog: UN secretary urged governments to impose windfall tax on 'immoral' energy companies

Round-up of ESG coverage

Investment Week
clock 04 August 2022 • 1 min read
The extraordinary general meeting (EGM) will take place on Friday 5 August.

Trian 1 story continues as shareholders call for support ahead of extraordinary general meeting

'Not fit for purpose'

clock 26 July 2022 • 4 min read
Lorenzo Brunelli, ESG product strategist at PIMCO

Partner insight: Looking beyond the labels

Investors should look beyond ESG-labelled debt and at opportunities like unlabelled green bonds and climate leader bonds

clock 19 July 2022 • 1 min read