International Economic and Market Overview October 2014
As expected, the US Federal Reserve in October stopped its purchases of Government bonds and mortgage securities, a process euphemistically known as Quantitative Easing or QE. Not to worry; they have committed to maintaining the existing investments on their balance sheet, now a whopping $4 trillion, by reinvesting the interest and principal as they come due. Almost on cue, the Bank of Japan unexpectedly announced additional stimulus measures, boosting its own asset purchases for the first time in over a year and a half as its 2% inflation target looked increasingly unachievable. The BOJ will expand their annual purchases to ¥80 trillion (the equivalent of $720 billion), allocating an increasing amount to Japanese equities and REITs. 10_2014_CFAL_International_Economic_and_Market_Overview Click here for full International Market Overview

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