Financial markets rallied last week as mainly driven by the Fed’s announcement of QE3. While commodities had benefited the most among the asset classes in QE1 and QE2, we think the positive impacts this time would reduce due to higher price levels now compared with a few years ago, less supportive macroeconomic outlook and deteriorating impacts that quantitative easing would have on the economy and asset prices. Among the commodities under our coverage, we believe precious metals would get the most advantage from QE3.
Excerpt from:
Weekly Fundamentals – Precious Metals to Benefit Most from QE3
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