You are reporting the following post to the moderators for review and possible removal from the forum

gn1tmac
RE: Down goes the Dow

agip wrote:

No one really knows the impact of QE on the stock market,. Impossible to quantify.



That is incorrect. QE or expansion of the "monetary base" will always increase the price on financial and real assets. it is artificial demand for these assets. since supply/demand curve is eco 101 you should know prices for these assets rise. it trickles down the capital structure and equity prices rise as (expected) return on equity diminishes as well. this explains p/e multiples on fast growing tech companies and multiple expansion in the markets.

Hit the submit button below if you want us to review the post.

If you feel this is urgent or want a reply, email us at [email protected] about the post and please include a link to the thread the post is on and what page number/post on that page it is.