Yeah there is a lot of chatter about QE4 & personally I think US equities are setting themselves up for a fall.
Yellen to date has aggressively withdrawn stimulus & it would be a big back flip to reinstate QE after just withdrawing it. I suspect this is just another spruik in a long line of spruiks by equity traders & fund managers.
I can't see the Fed being too concerned about a 5% drop in equities & corporate earnings is relatively strong.
Q4 should see the impact of the stronger USD so I suspect Q4 wont be as strong as what we are seeing now.
I think Yellen knows the market needs to return to some kind of normalization & that the Fed isn't there to provide the free put the market has relied on.
On another note I see Citibank just bought Deutsche Bank's commodity business.
Interesting move, neither have been that good at commodities imo.
Perhaps that might change...
