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There are winners and losers in the stock market investing world for quantitative easing.  It is intended to help the entire economy as a whole, but there are some stocks that will fair better than others.  Here is a quick rundown of who the winners and losers might be and how your investment strategy might need to be adjusted.

The US Fed just bought another $600 billion worth of government bonds.  They did this so to pump money, credit and liquidity into the system.  Right now, banks are holding on to their cash and not lending it out because of the current economic situation.  The quantitative easing measure was intended for businesses to be able to borrow money cheaply, to expand their business and hire employees.

This monetary policy is great for small cap stocks.  These are the ones looking for more credit, financing and liquidity.  These are also the companies most likely to create jobs with the money they get.  So if you are looking for a good stock market investing strategy right now, it would be in small cap stocks.

Some say that large companies may simply use the cash to buy massive amount of equipment and technology to replace jobs even more.  They say quantitative easing may cause a rise in productivity, but not in jobs.

This may be just stock market basics to you, but one of the side affects of this monetary policy has been to make US exports cheap.  So for stock market for beginners investing, this is a good time to invest in companies that export from the US.  It’s the similar principle that keeps China from letting their Yuan rise.

The potential downside to this monetary policy has been for emerging markets and companies that are heavily exposed to currency risks.  That is because this policy has caused the USD to plummet while causing other foreign currencies to rise.  This policy has created a ton of uncertainty and volatility in the markets.

When you are in the midst of a global recession it can be a little tough to find a good place to put your money. The fact is that you can’t just take your money and stuff it under your mattress. So when the market is up and down and there is a large amount of financial instability where do you put your money and where do you not?

The first place you do not want to make an investment is in the stock market. Not unless you have a great hunch that pays off huge and even then it is still not a good move. The stock market has fluctuated around the 10,000 mark for months. Also, the financial reports that keep coming out are not leading to confidence in purchasing stock so at best stocks are being held for a few days and then sold off for small profits or losses.

Usually when the market is bad, in the past people have put their money into land and homes. Not now though. With the collapse of the mortgage market two years ago the housing market has yet to recover. While land will never lose 100% value, it is not gaining much value. Sure maybe down the road it will recover, but that will be after the foreclosures have slowed, and those homes are purchased, and the homes that the average person is trying to sell are purchased, and then a spike in new home production should occur. So as you can see the real estate market has a long way to go.

Right now if you are looking for a safe investment, and one that may have a decent yield the answer is gold. In tough financial times smart investors always put their money into things like gold. The reason gold, silver and even copper are good investments is because they will always have value. Over the past 2 years gold has gained more than $400 per ounce. That is a pretty remarkable return in this current market.