A Frightening End to QE Is Coming; The Only Question Is When: Opinion
By Rory Eakin, COO of
NEW YORK ( TheStreet) -- The macro has dominated the micro in the public markets for more than four years. A return to normal will likely not come without a severe market correction.
In spite of the 14% run-up on the S&P 500 since June 1, capital continues to flow out of the equity markets. It's no wonder why. Since the financial crisis reached its climax in late 2008, companies' fundamentals have become secondary to the activities of central bankers.
As a result, even skilled bottoms-up investors have struggled to generate consistent returns. While rigorous analysis might lead an investor to doubt a particular company's earnings forecast, all bets are off if central bankers continue to pour money into the financial system.On Sept. 13, Federal Reserve Chairman Ben Bernanke announced a third round of quantitative easing ("QE3"), which comes in the form of an open-ended commitment by the Fed to purchase
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