Rob Arnott doesn’t share your enthusiasm for QE4

Rob Arnott of Research Affiliates is running over $50 billion despite not being a household name a la Mario Gabelli or appearing on his own cereal box like Peter Lynch used to. I read Rob’s commentary every month and you should too.

This week he’s less sanguine than most about the Fed’s latest Operation Spray Kerosene on the Campfire…

To no one’s surprise, the Fed announced that it will replace the expiring “Operation Twist”—in which it was selling $45 billion of short maturity treasuries and buying a like amount of long maturity treasuries every month—with continued purchases of long bonds. The Fed announced in September that it will buy $40 billion per month in mortgage-backed bonds, to help bring life back into the real estate market.

What does this mean?

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