‘Experiment’ of QE has gone on too longAFR PUBLISHED: 12 Nov...

‘Experiment’ of QE has gone on too long
AFR PUBLISHED: 12 Nov 2013 18:11:23 | UPDATED: 13 Nov 2013 00:05:22
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http://www.afr.com/p/personal_finance/portfolio/experiment_of_qe_has_gone_on_too_xhcY7qSWD5QZ8a34BXrVPN

Interesting article with Richard Lewis as global head of equities at fund manager Fidelity and oversees $US261 billion saying the liquidity created by the central banks has NOT flowed to where it is most needed - business investment, rather is following the path of least resistance, into the hands of speculators who bid up asset values.


Is investment really now just a transfer of assets at ever-inflating prices ?

Richard Lewis suggests the incentive systems of the decision-makers needs to change to encourage actual growth.


Agree with sentiment of article, issue remains (a) where to find growth and (b) IF the population truly reluctant to spend then why ?






Overall my feeling remains longer term, balanced with some nervousness for unexpected, not clearly addressed, events pushing downwards.

While currently NOT opposed to the buyback as benefits self longer term, do wonder if share-buyback best way of spending money to increase value of the business ?





IMHO focus remains firm, keep reducing losses, keep reducing expenses, while search for how and where can increase turnover and income.