The Investors That QE Left Behind

Quantitative easing from the U.S. Federal Reserve has certainly been great for the U.S. stock market over the last five years. But that does not necessarily mean that it has been great for everyone. Just as there is no free lunch, the cost for first rescuing the global economy and subsequently inflating asset prices including stocks in a failed attempt to generate sustained economic growth through the ‘wealth effect’ has been borne directly by retirees and those living on fixed incomes that have been forced to take on greater risks with their savings to generate income with interest rates pinned effectively at 0%. And not all investors have benefited equally. For while the U.S. stock investor has certainly been blessed in this sluggish growth world over the last several years, the same cannot be said for those allocated across many other asset classes.

Please click on the link to read more of my article on Seeking Alpha.

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