How did the $37 Trillion Bond Market miss the real effects of QE( quantitative easing) on bond prices and yields?
San Ramon, Ca (PRWEB) October 23, 2013
When the Fed buys bonds yields go down and prices go up, right? That is what the financial news media, commentators and many economists now believe since the beginning of bond purchasing in 2009. It makes perfect sense. When a product, service or asset is in high demand, prices go up. No reason to argue or even question this conventional wisdom. It is no wonder that the financial and economic community hasn't been compelled to analyze the impact of Federal Reserve bond purchases on bond yields and prices.
Research done by Richard Morey, a Registered Investment Advisor in northern California, has exposed an unbelievable oversight by the economic and financial fraternity. This research and commentary is the subject of a report titled,"One of the Greatest Misconceptions in Economic History". The research helps explain some of the uncharacteristic movement and volatility in the bond market this year. Mr. Morey has said he believes it is impossible to know the effects and consequences at this time of QE monetary policy. The report does make it clear that the financial industry has been overlooking or avoiding the reality that QE is having unnatural effects on financial markets, in particular the bond market.
Mr. Morey said that he "hopes this report will help professionals and retail investors view the Fed's monetary policies with caution."
This report is available for download at :http://secureretire.com/files/QuantitativeEasingWhitePaper.pdf free of charge.
Richard Morey is President of Secure Retirement, a fee only registered investment advisor located in California's Bay Area. Richard directs the investments for hundreds of families retirement accounts. Secure Retirement practices the principle of active, disciplined management of clients retirement accounts to safeguard their money regardless of market conditions. To access more economic and investment reports and commentary by Mr. Morey, please go to http://www.secureretire.com.