QE

Q&AQE
Joey Ting asked 4 years ago

“You may also like to consider exiting the ETFs which short the indices as more QE signals a bullish market – as an initial reaction.”
Does QE mean fed interest rate hike? Do they mean the same thing. (Sorry I don’t have macroeconomics background and these terminologies confuse me sometimes)
How do all these tie to 8th July, non farm payroll?
I owned AGQ since last night? Do you think I should hold it until non farm payroll?
Everyone predicted that interest rate unlikely to go up. 
 

Joey Ting replied 4 years ago

I remember now! QE means printing more paper money… Which is different from interest rate

1 Answers
pcwong Staff answered 4 years ago

QE is Quantity Easing. It is a policy used by Central Banks to pump liquidity into the market – or what is known as printing more money. It is also accompanied by a reduction in interest rate. So this type of action is often bullish for the market, but furthe rdown the road will be more harmful to the economy.
During the financial crisis the Fed implemented QE1 -3 with near zero interest rate regime. look where we are today. The global economy is worse off.
Non-farm payroll is the important US jobs report. I tis a report that details job growth in the US.
If you have bought AGQ then you should hold it over the long term. Look at its historic high and you will know why I said this. Incidentally, silver is on a breakout and today it has gone above US$19 per oz. Silver should continue to trend higher due to demand being more than supply. This will support AGQ’s price.
The Fed will not hike interest rate. In fact I think they will implement QE4.
Hope this helps.