Very interesting article today on Bloomberg suggesting Fed stimulus is less effective than intended because of increasing investment in software

Jay Soloff

Argonath Financial

Very interesting article today on Bloomberg suggesting Fed stimulus is less effective than intended because of increasing investment in software. One of the goals of QE is to keep rates as low as possible to spark business investment in capital goods such as equipment and factories. This sort of investment typically create jobs. However, many businesses are spending instead on software upgrades to improve efficiency. While these improvements are good for the company, they generally don't lead to new jobs - it may even lead to fewer jobs. While this is an intriguing point, I think there's more to it. QE is also supposed to inflate asset prices to create a wealth effect which is beneficial to the economy. While QE may not have led to robust job growth, it's certainly done its part in driving asset prices higher. (VIEW LINK)


3 topics

Jay Soloff
Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.