Stock Prices Have Risen Every Week the Fed Bought Bonds Since 2009

I can’t say this is surprising, but it’s still interesting to hear once and for all. Gotta love those non-existent free markets we hear so much about…

From Forbes:

Here is the most important factual find about the stock market I’ve learned for some  many years: More than 100% of equity market gains since January 2009 have taken place during the weeks the Fed purchased Treasury bonds and mortgages.

And conversely, during the weeks when the Fed did NOT  buy Treasuries or mortgage backed bonds, the stock market declined.  Can you beat that?  Credit to Michael Cembalest, Chairman of Market and Investment Strategy for J.P. Morgan Asset Management, for that extraordinary discovery.

Banana Republic.

Full article here.

In Liberty,
Mike

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