Investing When Second Round of Quantitative Easing, or QE2, Appears Immanent

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David Ning is an author; trusted advisor and founder of MoneyNing.com, a website aimed at helping its 300,000 monthly visitors understand investing and other money management principles crucial to building wealth and creating financial security. David Ning is also a regular contributor to USNews.com.

Personal finance blog MoneyNing.com offers insight to those confused over investing and other wealth-building principles in a recent post at http://moneyning.com/.

Federal Reserve Chairman Ben Bernanke continues to hint that the Central Reserve Bank will soon initiate another round of quantitative easing (QE) in an effort to revive the stagnant economy. This would be the Fed’s second attempt at such "easing" of the economy. Its initial QE efforts in September of 2008, according to most economists, successfully prevented a global depression.

Although these efforts are designed to encourage investing, some worry about the effects a second round of easing may have on inflation.

Bernanke explained the need for a second application of quantitative easing (QE2) by saying, "Overall economic growth has been proceeding at a pace that is less vigorous than we would like."

Over the past two years, concerns about the economy have fueled a renewed interest in frugal living, wise investing, and other principles crucial to building wealth and creating financial security. Finance-related blog MoneyNing.com addresses these issues in its regularly updated posts.

One recent post entitled Imagine What a Buck Could Do Before You Gain that Wealth advocates investing windfalls in a mix of stocks, bonds, gold, REITs and cash.

The posts’ author Vered Deleeuw explains, "You then live off the interest that the bond portion generates, allowing the stocks to appreciate long-term, each year selling just enough of the stock portion (which tends to grow faster) to stick with your asset allocation plan and refill your bond cushion."

Similarly it’s hoped that the Fed’s QE2 efforts will result in corporations investing the windfall of cash in developing their organizations and thereby buoying the market and stimulating jobs growth. Only time will tell whether this gamble will achieve the desired outcome.

David Ning launched MoneyNing.com in 2007 in an effort to help others understand how to build wealth through careful spending and wise investing. The comprehensive site covers a variety of money-related issues and has acquired a following of over 300,000 monthly visitors. Ning is also a regular contributor to USNews.com.

MoneyNing.com has been featured on a number of news sites including the NYTimes.com, Time.com and USNews.com. Subscribers of the personal finance blog receive a weekly newsletter, access to a mini course on frugal living, and a copy of David Ning’s eBook How to Save Money on Everything.

To subscribe to MoneyNing.com, or to read the Imagine What a Buck Could Do Before You Gain that Wealth post in its entirety go to http://moneyning.com/.

To better understand investing visit http://moneyning.com/.

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