Is this the start of a winter of discontent or just an autumn squall; how should trustees react to the changing face of QE?
Over the past five years investors have been amply rewarded simply for staying invested and avoiding holding cash. Moreover, in that period returns have gradually accumulated with little underlying concern.
However, the end of Quantitative Easing (QE) from the Federal Reserve is nearly upon us and there is potential for this to cause a re-assessment of where economies and markets are heading. We think the time is nigh for trustees to re-assess and re-examine a few central themes within their portfolio, to ensure they are able to cope with the challenges of the next five years.