Tag Archive for Stock Prices

ISM Services A Pretty Good Indicator

The ISM Non-Manufacturing index rose to 57.1 in December. This chart shows the ISM Non-Manufacturing index overlaid with the S&P 500. It shows that the stock market does not lead the economy. The idea of the market as a discounting mechanism is a Wall Street shibboleth.  In fact, there are instances where economic data turns…

Fed SOMA and The Economy- The Puppetmaster

It’s mind boggling to me, just mind boggling, how nobody gets the simplicity of the pipeline from Ben Bernanke’s twisted brain to his henchmen the Primary Dealers, to the stock market and the economy. When the Fed pumps money into Primary Dealer trading accounts, they manipulate stock prices higher. When stock prices go up, the…