Stocks, bonds, gold and the euro are expected to fall in the three months after the end of the Fed's second massive bond buying operation, also known as quantitative easing, or QE2.Investors and traders approach the end of QE2 with a sense of trepidation, worried that with the Fed no longer supporting the market, investments that have been profitable for the last nine months will plummet and rattle confidence in the shaky economic recovery.
The survey showed investors overwhelmingly thought government bonds would suffer from the Fed's exit, with 40 of 64 respondents saying the end of quantitative easing would drive up yields on U.S. 10-year Treasury bonds.
Concerns about the European debt crisis, the Chinese economic slowdown and the struggling U.S. jobs market, already gnawing away at investor confidence, may now take a big bite out of sentiment across a range of markets.http://www.reuters.com
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