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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 published with the permission of Confounded Interest. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

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,

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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?

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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.

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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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