BFM Podcast

Saying Goodbye to QE

Tan KW
Publish date: Thu, 30 Oct 2014, 11:45 AM

Ben LeBrun, Options Express

30-Oct-14 10:45 

Ben LeBrun, market analyst for Options Express gives his comments on the end of QE and what it means for the markets. He also talks about Goldman Sach's sour predictions for the Australian economy and the potential India vs China face-off.

Discussions
Be the first to like this. Showing 19 of 19 comments

chloe_ts

Finally..

2014-10-30 11:48

fortunebullz

And after this oil price will slowly go up again!

2014-10-30 13:26

sunztzhe

FED says goodbye to QE but Draghi of ECB says "I wanna QE more!!" hahahahaha

2014-10-30 13:31

fortunebullz

ECB surely launch QE! It's all politics!

2014-10-30 13:34

sunztzhe

THE BULL KILLS THE BEAR
Although there is current uncertainty, gloom and perhaps pockets of doom, the stock market is already looking ahead to a global economic turnaround. Crude oil prices had receded to USD 80/barrel and maybe lower in 2015. This is good for global economic growth overall although the oil exporting countries may not be earning as much as they would have liked with oil prices above USD 100/barrel.

Although the FED had stopped QE, Europe had started to QE aggressively and that means global liquidity is not impacted much. The world will be in a benign interest rate environment for 2015 and that is good for stocks.

The Euro will weaken against USD and this will help the European exporting nations particularly Germany and this augurs well for future turnaround in European economies. European funds will flow out as Euro weakens to say 1.15 or parity with USD and some European funds will invest in emerging market equities.

The USA and maybe Europe will likely embark on infrastructure investment to replace its decaying infrastructure that it currently has. This will be the catalyst to spark a global demand for commodities.

The bull market will kickoff in late November 2014 as ECB decides on aggressive QE and the rally will continue with intermittent correction. What one ought to look out for is any credit tightening measures the FED in USA may take in the future which will have a knock on effect on the rest of the world. I do not see this happening for good part of 2015. Anyway the FED will give ample warnings before doing so.

One should be fully invested in stocks now rather than worry about another possible corrections which had just happened in first two weeks of October 2014.

2014-10-30 23:20

calvintaneng

End of the world?

Not by Great Depression! But By Hyper Inflation Instead.

The Book Says, "One Day's Pay Will Suffice For One Man's Food Only."

Food will be SO EXPENSIVE Or The Value of Money Has Been Totally Destroyed By Endless QE?

Revelation 6:6 says, "A measure of wheat for a penny.."

In Biblical Times A Penny Is A Daily Wage of a Common Labourer. A measure of wheat is one day supply of wheat for a person.

Calvin's Interpretation of Rev. 6:6

"A Day's Wage Equal To One Day's Food For A Working Man"

It denotes HYPERINFLATION In End Times.

This Is The Actual Event Predicted By The Bible

HYPER INFLATION - Not Great Depression

2014-10-30 23:45

sunztzhe

ka55,
Please be informed that the European economy is just as big as the USA economy. Infact both are equally as big and influential.Once Europe QE aggressively like what FED of USA did in 2009 onward, the Euro will weaken to say 1.15 or parity with USD. European funds will flow out. Majority will go to US to buy US bonds(safe heaven currency as US balance of payments is improving fast due to own oil production and gas exports plus appreciating USD vs Euro) and some will go to emerging markets which offer higher returns on investment.

European Funds will seek higher returns than what they can get in Europe.

2014-10-30 23:55

fortunebullz

What a weird day! Dow actually shot up on day Fed announcement! Can't find any news to justify this! W

2014-10-30 23:57

calvintaneng

Fortunebullz

Nothing weird. I heard Fed Also Print Money To Buy Shares Directly with Fiat Money.

The Rules of the game can be changed & changed. Nothing is safe anymore!

2014-10-31 00:05

sunztzhe

Ka55, Interest rate will not go up for a while as the deflationary pressures in Europe is very real. QE just ended in US but going to start in Europe. ECB eventually will QE aggressively to avoid massive bankruptcy in main European countries. So Euro will deprecate n go outside to seek higher returns in US bonds n elsewhere that gives higher returns.The low oil prices worldwide will continue for a while longer n this is another form of QE. The depreciated Euro will help main European economies to recover.With low oil prices China, India n other economies will grow n Malaysia will derive some benefits.

As any future credit tightening measures by FED will impact on liquidity n on stock prices the main focus is to monitor closely on potential future interest rise, when n how much. At moment it's business as usual and hopefully up to next October in 2015.

2014-10-31 18:06

1007lsl

at the beginning
it was the WORD
the WORD was with GOD
the WORD was/is GOD
any holy scripture/sutra
DO NO PREDICTION (fortune telling-meh?)
but SPEAK THE TRUTH
nothing but the TRUTH
as D LORD says
the gift of Truth excels all other gifts
-the highest gift
-the BUDDHA saying
-HALILUJAH !

2014-10-31 22:54

1007lsl

do not worry
look at lily
in the valley
'''''''''''''''''
america ends QE3
BOJ boosts economic stimulus
EU QE is charging
china is pumping RMB into country-own-banking system
1MDB & so many boleh giant corporates-raising SUKUK
I am sure
kita BOLEH

2014-10-31 23:12

1007lsl

r u in ?
tak boleh
life is always too short
to say
I LOVE U
so much
untill u have really missed him/her/them

market is nothing
if compared
to your LOVED ONE
may GOD bless you & your loved ones

2014-10-31 23:20

1007lsl

A Day's wage equals to one day's food for a working man"-Rev 6:6 (Bible)--
1)emperor/king/queen/agong/sultan.....
2)pm/minister/menteri besar/governor/mp
3)director/ceo/manager/guru besar..........
4)labourer/kuli.........
5)pelacur......
6)ah kuah........
7)banyak -banyak lagi ,a working man ,..........
under the eye of God
each of them is EQUAL (son/daughter of God)
earning a living (cari makan)

some cari more MAKAN
rezeki masing-msing
tak usah blame ...yah?!


TAKDIR yang menentukan segala-gala-nya.

so,
in Biblical time
1 penny=1x2014=2014 pennis at present time .

matimatikal lojid/saham lojid ?


jangan tanya gua
gua tak tau


so, do not trust anything BLINDLY..............


GOD DO NOT WANT US TO DO SO

GOD LOVE ALL OF US

2014-11-01 01:02

1007lsl

GOD is not blind
but
we blindfolded ourself

2014-11-01 01:07

buffetthe2nd

welcome japan and europe...ha

2014-11-01 01:13

fortunebullz

I think I jump ahead when I said markets going to take breather yesterday! Apparently US announced their superb 3rd quarter of 3.5% GDP! And today Japan announce their QE! Will Japan going on shopping spree on stock markets! In bursa plenty of stocks are laggards and some already jumps ahead of their upswings! I rather not talk much until I see what's going on this coming days!

2014-11-01 01:15

buffetthe2nd

btw...china? r u coming? ha

2014-11-01 01:22

fortunebullz

Damn! Today US and Europe already making year high after deep correction! Means that bursa have to chase 30 points to reach pre correction level! Just my 2 cents!

2014-11-01 01:28

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