Thursday, September 5, 2013

Asset purchase program has been a complete disaster.

I think capital flows have moved out of emerging economies because the US equity markets have started performing well over the last one year. Investors must realize that the yield on US 10-year treasury notes bottomed in July 2012 at 1.43%, and after that it moved to 2.88%. In my view, the asset purchase program of the Fed has been a complete disaster.