While we are told that QE was "easing" but tapering is not tightening, it is worth remembering that "conventional" balanced portfolios have performed dramatically worse when the Fed is not easing. However, what is more worrisome for the 60/40 crowd is the following chart as "excess" returns suggest a period of disappointing performance lies ahead. As we've asked before, is this as good as it gets?
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Source: Wadhwani Asset Management