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,
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
it appears that the biggest boost came with the first round of QE (aka, QE1).
The same for inflation, except that what little inflation has been occurring happened in 2012 and even that has worn off.
As I have discussed before, corporate profits have been getting hammered with the fade of QE.
Wages? What wage growth?
The only asset class that has continuously benefited from The Fed’s light is residential real estate.
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.
Janet Yellen and Ben Bernanke commiserate over the failed sustainability of Fed monetary policies.
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