Preparing for the end of QE3

AS the US Federal Reserve concluded its monthly meeting yesterday, one thing should have become even clearer to financial markets: quantitative easing (QE), the unprecedented experiment of a central bank buying long-term bonds to keep the long-term cost of borrowing low to boost the economy, is coming to an end. If all goes as planned, the asset-purchase programme will end by October. Even so, the Fed has said that interest rates will be kept low for some time after QE3 ends.

In recent months, investors...

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