After five years of quantitative easing in the US and after $US4.5 trillion of liquidity entered the market, the aggressive "pump priming" from America is over.
What does this mean for an investor?
The first thought that comes to my mind is concern. The extra liquidity that has been pumped into the system has been forcing up asset prices across the globe, particularly in the stock market. Since the US market bottomed on 6 March 2009 at 666, the S&P 500 Index is up over 200%. However it hasn’t been smooth sailing.