With no more QE interest rates would start to rise. Generally this causes businesses to become less profitable due to higher borrowing costs, and has a slowing effect on the economy. Normally this would cause stock prices to fall, however assuming that the economy was doing well and unemployment was low, the higher rates shouldn't be too much of a problem. The idea is that QE helps to boost the economy and stock prices during tough times, however if times are good, everything should hold steady without a need for QE. That's the theory anyway.
Without QE from the gov't, the market would trade both ways like most free markets, and not just to the upside.
If "the economy was doing fairly well," why would the gov't want to change anything?
Yellen told us at the last Fed meeting that interest rates would probably rise in 6 months, about the same time the taper should end. They can hardly do both QE and raise interest rates. What would that be, a double oxymoron?
You apparently believe (as do MANY Americans) that "printing additional US currency" is a new thing, or a temporary thing, or has something to do with the current Administration...
When the US first moved to fiat currency in 1933, BECAUSE the US dollar was becoming the "world's currency" we HAD to begin printing enough additional dollars each day so that the average number of dollars in circulation per human being was held fairly stable....and since the US practices no global population control, the only way to do that effectively is to "stay ahead" of the global population growth rate creating deliberate (slight) inflation...
Why would we have to do that?
The alternative would be for each dollar to become worth a tiny bit less with each new human born (since there would be fewer to 'go around'), which would cause deflation, which would require your wages to be reduced slightly every few weeks!
Are you SURE that's what you want?
(Without the current round of enhanced QE, the Stock market would do what it has done for 200+ years....grow at an average annual rate of 7-8% and spit off a dividend bonus of 2-3%)
You should probably turn off the AM radio, it may be rotting your brain!
What are the interest rates and bonds doing?
What about commodities, real estate and precious metals?
On the world stage, is Russia invading anyone new? Iran got a nuke? How about haircuts in North Korea?
unemployment was low, the economy was doing fairly well, but there was no more qe?
