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Thursday, September 13, 2012

What ETFs Performed Best During QE2?

RMS Queen Elizabeth 2 (#481)
RMS Queen Elizabeth 2 (#481) (Photo credit: Christopher Chan)
What ETFs Performed Best During QE2? If you are looking for an edge in terms of Thursday's highly anticipated Fed announcement, the statements leading up to the announcement of QE2 in 2010 are an excellent place to start. Thus far, 2012 has not strayed far from the 2010 QE script, meaning we believe it is only a matter of time before QE3 is announced.
QE2: Winning ETFs
Should the Fed announce another round of asset purchases as expected, it may be handy to know the following ETFs were the big winners during QE2: silver (SLV), oil equipment (IEZ), oil services (OIH), oil/gas equipment & services (XES), oil & gas exploration & production (XOP), energy (XLE), coal (KOL), metals & mining (XME), natural gas (FCG), global energy (IXC), agriculture (RJA), small cap growth (IWO), Russia (RSX), semiconductors (SMH), and private equity (PSP).
QE Script 2010
In 2010, the Fed used both Jackson Hole and a formal Federal Open Market Committee (FOMC) statement to set the table for the announcement of QE2 in November. The Fed language from points A, B, and C are summarized later in this article. Point A is Jackson Hole 2010, point B is a Fed statement that “disappointed” the markets since QE was not announced, and point C is the formal announcement of QE2. The chart of the S&P 500 allows you to see how stocks reacted at points A, B, and C.
QE2 Key Fed Dates 2010 2011
Below are the key portions of Ben Bernanke’s 2010 Jackson Hole speech, which are followed by this year’s remarks for comparative purposes. ... Continue to read.
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