The FT had a very good graphic on the impact of QE on asset prices. Beautiful graphics should tell us something profound. What I see here is a QE policy that is having less impact on all asset prices. the markets are just not moved by the same way as the earlier QE programs. The only exception to the trend of lower reactions is with Japanese equities. This is a special case because most of the move is related to easing by the BOJ.
This is not what the Fed was expecting when they started QE3. The talk of tapering has not addressed the simple fact that the current purchase program is not moving asset prices.
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