The more deaths, the more the market rallies. Yesterday’s US COVID 19 death toll was 2,528, the highest since April 21. The University of Washington model, which has been pretty accurate, now calls for 3,000 deaths a day in June as states reopen their economies.
Notice how the stock market correlates. Deaths have broken out. Will stocks follow?
Why it’s such a bad idea to even discuss.
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
Fed QE $6.000B CouponPurchase 2020-05-07
Fed QE $2.50B Coupon Purchase 2020-05-07 NYFed treasury securities operations
Readers ask for specific recommendations for successfully navigating the post-credit/speculative-bubble era and I try to do so while explaining the impossibility of the task.As the bogus prosperity economy built on exponential growth of debt …
The Fed has cut back its POMO purchases to an average of $8 billion per day of Treasuries and $6 billion of MBS this week. That’s down from $10 billion and $8 billion last week, and hundreds of billions in the peak of the panic in April.
The effects of that are beginning to show up in stock prices. Be prepared because here’s what happens next.
The Economic Policy Institute published an interesting piece of research on the links between H1B visas and lower wages paid by the U.S. employers for key skills: https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels/. As far as I …
S&P500 and earnings per share: what should matter, doesn’tWe are now in extreme territory of the markets ignoring basic corporate fundamentals.
The Giant Glut of Oil continues (see my analysis of oil markets fundamentals here: https://trueeconomics.blogspot.com/2020/04/23420-what-oil-price-dynamics-signal.html)China strategic oil reserves have also surged. U.S. oil reserves are now nearin…
