Buy, sell or hold? AXA IM's ultimate guide to the end of QE

US equities can benefit from the end of QE and post an annualised return of 10% by end-2014, according to AXA IM head of research Eric Chaney.

Analysing the impact of a tapering of the Federal Reserve's quantitative easing programme, Chaney and team said asset prices will most likely return to their "fundamental dynamic equilibrium" as the first stage of normalisation begins. Assuming tapering begins this September, the wind-down will be complete by mid-2014, according to the team. Below we detail their predictions for how this process will affect a number of asset classes. End of QE: expected impact on asset prices (end-2014, baseline/alternative growth scenarios, year-end US inflation at 1.8%) US GDP 2014 Q4/Q4 1...