Fed’s QE3 May Spur Global Rally in Asset Prices
Global asset prices may be set to rise following the Fed’s decision to implement a third round of quantitative easing. During QE1, the MSCI World Index rose about 40 and during QE2, global equities rallied about 18 percent. They advanced 16 percent during Operation Twist, which was extended in June. The CRB Commodity Index benefited during QE1 and QE2, climbing an average 27 percent.
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