Easy Money Now – But What Happens Next?

We saw this chart recently and could not let it go without comment. It shows how, since inception in December 2008, the Federal Reserve’s Quantitative Easing (QE) program has matched the rise in the S&P 500. With the market just off its all-time high, more than 80% of the index’s rise during this period has taken place when the program has been active. Just as evident, the market has eased during periods when the program has been dormant (the white vertical bars). Global markets have benefited from the Fed’s program, with the countries and blocs carrying out their own QE (the UK, Japan and the Eurozone) enjoying an extra boost.
The Markets' New Buzzword; "Tapering"