Has QE resulted in 'bubble trouble' for global equities?

GLOBAL EQUITIES

On 25 November 2008, the US Federal Reserve kicked off its QE programme.

Over the past five years, QE has become increasingly common in the global economic landscape. Other developed countries have emulated it by launching similar programs, all of which helped cut borrowing costs and supported asset prices. In fact, in the five years since QE took off, global equities have returned more than 15% on an annualised basis, treasuries close to 5%, and US high yield credit more than 20%. This has been a great period for investment returns, but not so great for the growth of the global economy. This disconnect poses the question – does QE’s reflation of asset ...