The Fed will start the QE2 by buying Treasury bond in an amount of $75 billions per month for 8 months for a total of $600 billions. Most of the money will go to banks.
How the QE2 affect the stock investors? It is hard to tell right now. It depends on how the banks will use the money. If the money is used for business loans to business for business growth to create jobs, it is good for the economy. If the money is used to invest in the stock market, stock price will go up. But there is a good chance that the money will go to overseas to emerging markets where profit is higher. Generally speaking, in any way, the stock market should do better than now.
