How does quantitative easing affect asset prices?
Cfefinances
Quantitative easing increases the money supply by having a central bank purchase large amounts of long-term securities. This lowers interest rates and typically pushes asset prices higher as investors shift into riskier investments in search of yield.
Think about what happens when a central bank buys huge amounts of bonds. Rates fall and investors rotate into riskier assets chasing yield, which pushes prices up.