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Only Housing Has Legs As Fed QE Wears Out (Corporate Profits, Wages, Inflation, S&P500 All Sagging)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

The Federal Reserve’s quantitative easing has been very, very good to the stock market. While The Fed’s zero interest rate policy and QE has been an enormous boost to the stock market,


Now The Balance Begins To Shift

The balance between QE and Treasury supply will begin to shift in July. The underlying bid it has provided for stocks and Treasuries will begin to fade.

This report tells why, and what to look for in the data and the markets.  GO TO THE POST


levels

it appears that the biggest boost came with the first round of QE (aka, QE1).

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The same for inflation, except that what little inflation has been occurring happened in 2012 and even that has worn off.

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As I have discussed before, corporate profits have been getting hammered with the fade of QE.

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Gold?

fedgoldyoy

Wages? What wage growth?

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The only asset class that has continuously benefited from The Fed’s light is residential real estate.

housefedyoy

So, while corporate profits have been getting blitzed and wage growth is flat, residential real estate (aka, housing) has shown amazing legs as an asset class.

Better than the ending of either “Pitch Black” or “Chronicles of Riddick.”

Janet Yellen and Ben Bernanke commiserate over the failed sustainability of Fed monetary policies.

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Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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