Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Thursday, September 21, 2023
QE4EVER / Stock-Markets / Quantitative Easing
By: Nadeem_Walayat
For over a year now all you have heard on MSM has been how tapering is bearish for asset prices, what;s the narrative that the perma fools have clung onto for new bear market lows being just around the corner right to the recent wholesale capitulation where bears turned into blow off top clowns!
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Sunday, April 30, 2023
QE-Light Forestalls Crisis…For Now / Stock-Markets / Quantitative Easing
By: Michael_Pento
First Quarter GDP increased at only a 1.1% seasonally adjusted annual rate. That was down from 2.6% in Q4 of last year, which was down from 3.2% during Q3. Despite the clear slowdown in economic growth, there still exists a battle between Wall Street's soft-landing narrative, where inflation comes down in the context of robust growth. And the other, and more accurate scenario, where inflation falls because of a recession.You just can't get the ROC of inflation and growth to increase when money supply growth plunges from 27% in 2021 to one that is contracting by 4%, as of the latest March data.
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Thursday, April 01, 2021
Fed: “We’re Not Going to Take This Punchbowl Away” / Stock-Markets / Quantitative Easing
By: MoneyMetals
Precious metals markets are struggling against the headwind of a rising U.S. dollar this week.
The dollar index broke out to a four-month high on Thursday. Neither a much-awaited fall in bond yields nor dovish remarks from Federal Reserve officials dissuaded currency traders from buying Greenbacks and selling other fiat currencies.
Commodities and precious metals markets also saw some selling.
Despite choppy trading in metals markets so far in 2021, intense demand for coins, bars, and rounds continues to strain supply chains in the bullion market. Some mints and dealers are simply unable to deliver product to their customers in a timely manner.
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Sunday, November 08, 2020
Get Ready for a Post-Election ‘Fed Wave’ of Inflation / Stock-Markets / Quantitative Easing
By: MoneyMetals
As accusations of voting irregularities mount, President Donald Trump’s legal team is descending on Pennsylvania and Georgia as well as multiple battleground states that have been called by media outlets for Joe Biden.
It will be an uphill battle for Trump to get to 270 electoral votes. As of this writing on Thursday morning, the final outcome of the presidential election remains uncertain.
One thing that is now certain: Voters denied Democrats the “blue wave” many pollsters and pundits had been forecasting.
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Sunday, September 13, 2020
Biden or Trump Will Keep The Money Spigots Open / Stock-Markets / Quantitative Easing
By: Stephen_McBride
Trump or Biden: who will be our next president? That’s the most pressing question in America right now. And in less than nine weeks, we’ll get our answer.
As I type, Biden leads in most polls. But betting markets say it’s a coin flip. Polls tend to be wrong, and betting markets are usually right.
But I’m not writing you today to predict who’ll come out on top. Or guess at what might change depending on who wins. (I’ll leave that to the talking heads on TV.)
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Friday, July 17, 2020
The Bizarre Mathematics Of How Negative Interest Rates Create Stratospheric Profits / Stock-Markets / Quantitative Easing
By: Dan_Amerman
There is an increasingly good chance that the United States could end up following Europe and Japan, and that the Federal Reserve could use its vast powers of monetary creation to force a move to negative interest rates.
If that deeply unnatural event happens, it will invert and distort the very foundations of investment pricing, in ways that are little understood by most investors today.
It will also - for a time - create an unnatural source of profits that most investors have no idea about, because it has never happened before in the United States (and is still in the early stages in the United Kingdom).
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Saturday, May 23, 2020
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis / Stock-Markets / Quantitative Easing
By: Kelsey_Williams
The 21st century was ushered in by fears about Y2k and how it might impact computer programming that was already in place. Part of the concern centered on the financial markets.
The Federal Reserve announced that they were ready to support the stock market and provide backup for financial institutions that might encounter difficulties.
The big day arrived and, other than an occasional glitch that seemed to be unrelated to the heightened global fears, the birth of the new century was pretty much uneventful. Overall, the markets remained relatively quiet. However, trouble was still brewing.
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Thursday, May 07, 2020
Quantitative INFLATION - Fed QE4EVER / Stock-Markets / Quantitative Easing
By: Nadeem_Walayat
Once money printing starts it never ends! Instead what happens is any unwinding of central bank balance sheets tends to be temporary in advance of the next crisis which tends to send balance sheets through the roof. This has been my consistent message for the past 10 years since Quantitative INFLATION began in 2008! And so the corona crisis has seen the Fed once more flood the markets with liquidity buying up all sorts of assess left right and centre from junk bonds, to stocks of bankrupt corporations to of course government bonds, and when the buying is done the Fed will likely have DOUBLED it's balance sheet from $4.2 trillion a couple of months ago to approaching $9 trillion!
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Tuesday, January 07, 2020
Stock Market Trend Forecast 2020 - QE4Ever! Video / Stock-Markets / Quantitative Easing
By: Nadeem_Walayat
My consistent message since QE money printing began a few weeks prior to the birth of this stocks bull market in March 2009, my message has been that once QE money printing starts then it NEVER ENDS! So LEVERAGE once self to the perma money printing INFLATION MEGA-TREND. Invest in assets that are LEVERAGED TO INFLATION.
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Monday, August 12, 2019
Global Central Banks Move To Keep The Party Rolling Onward / Stock-Markets / Quantitative Easing
By: Chris_Vermeulen
The recent news that the US Fed, China and many of the global central banks are continuing to make efforts to lower rates and spark further consumer spending and economic activity is reminiscent of the late 2010~2013 global economic recovery efforts. This was a time when the economy was much slower than current levels and when central banks were doing everything possible to attempt to raise consumer and business activity related to capital.
The world’s governments and banks operate on a very simple premise – transactions and economic activity must continue to operate within a fairly standard range of consistency in order for tax revenues and transactional fees to drive profits/income. If extended periods of economic contraction persist, the capacity to function within standard operating parameters diminishes very quickly for these institutions. A -5% to -10% contraction in asset values, transactional business, tax revenues and/or consumer activity over an extended period of time could result in a catastrophic set of events taking place.
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Tuesday, June 14, 2016
QE - The Good, Bad & Ugly / Stock-Markets / Quantitative Easing
By: Axel_Merk
Are we better off with "QE", the ultra-accommodative monetary policy pursued by major central banks around the world? Is it "mission accomplished" or are we facing a "ticking time bomb"? Are extreme characterizations even warranted to describe the unconventional monetary policy of recent years, and what are implications for investors?
Sunday, November 01, 2015
You Will Hear the Roar of the Printing Presses from Mars / Stock-Markets / Quantitative Easing
By: Michael_J_Kosares
“We are exiting the eye of the giant financial hurricane that we entered in 2007, and we’re going into its trailing edge. It’s going to be much more severe, different and longer lasting than what we saw in 2008 and 2009… The U.S. created trillions of dollars to fight the financial crisis of 2008 and 2009. Most of those dollars are still sitting in the banking system and aren’t in the economy. Some have found their way into the stock markets and the bond markets, creating a stock bubble and a bond super-bubble. The higher stocks and bonds go, the harder they’re going to fall.” – Doug Casey, Casey Research
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Monday, September 21, 2015
Citibank Calls for Helicopter Money Drops across the Globe / Stock-Markets / Quantitative Easing
By: MoneyMetals
Stefan Gleason writes: A quietly panicking Janet Yellen and the Federal Open Market Committee (FOMC) decided the U.S. economy still isn’t ready for an interest rate hike last week and left the Fed funds rate at essentially zero – the same level to which the Fed’s credibility has now sunk.
After incessantly hyping the notion an economic recovery would allow the “normalization” of interest rates, the decision not to act suggests the economy is much weaker than they have attempted to persuade us.
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Friday, September 11, 2015
QE Forever Continues Unabated / Stock-Markets / Quantitative Easing
By: Sol_Palha
It is a fraud to borrow what we are unable to pay. Publilius SyrusCorporations are using share buyback programs to manipulate earnings, by reducing the float of outstanding shares. This ploy was not as ubiquitous before, but today it is being used rather indiscriminately by companies as a way to boost EPS. This modern form of alchemy turns would-be losses into profits or can be utilized to make modest profits appear to be impressive in nature. We are now in the paradigm of lies and deceit. In these conditions, the truth does not thrive.
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Wednesday, September 09, 2015
Stock Market Crash Sees the Fed Lost Half Its $4 Trillion Bet in 1 Week / Stock-Markets / Quantitative Easing
By: Rodney_Johnson
Since the financial crisis, central banks have injected trillions of dollars into the global economy. Their goal: to offset the natural downturn from slowing demographic trends and the crushing debt loads of the greatest credit bubble in history.The Federal Reserve alone has created $4 trillion in QE since late 2008. They tried to solve an unprecedented debt crisis by adding more debt.
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Monday, August 31, 2015
REPO Window Hidden $Trillion QE Monthly Volume / Stock-Markets / Quantitative Easing
By: Jim_Willie_CB
The massive Quantitative Easing (QE) abuse by the USFed and steeped lies are centered on its volume, which in reality is an order of magnitude higher than admitted. The recent usage of certain REPO windows has been effective to disguise huge volume of bond purchases. The entire bond system is irreparably corrupted. The REPO window hides QE extras with naked bond shorting linked to a $1 trillion extravaganza that receives almost no publicity. While the public, and even more financial market participants, focus on the Dow Jones stock index, the Treasury Bond yield, the crude oil price, and very little else, they overlook the Reverse REPO window and the related Failures to Deliver data for USTreasury Bonds. The two work like a hand and glove.
Friday, June 05, 2015
Debt and the Tinderbox / Stock-Markets / Quantitative Easing
By: DeviantInvestor
We know that the Federal Reserve cranked up their digital printing presses and created over $16 Trillion in new currency, swaps, loans, bailouts, gifts, etc. in response to the 2008 financial crisis. Example: Bernie Sanders says that Bank of America received over $1.3 Trillion in bailouts.
If you invested in stocks and bonds, the various QE – “money printing” programs were probably successful for you. Examine the following chart and note the impact of QE on the S&P 500 Index.
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Friday, June 05, 2015
QE Breeds Instability / Stock-Markets / Quantitative Easing
By: Raul_I_Meijer
Central bankers have promised ad nauseum to keep rates low for long periods of time. And they have delivered. Their claim is that this helps the economy recover, but that is just a silly idea.
What it does do is help create the illusion of a recovering economy. But that is mostly achieved by making price discovery impossible, not by increasing productivity or wages or innovation or anything like that. What we have is the financial system posing as the economy. And a vast majority of people falling for that sleight of hand.
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Friday, January 23, 2015
ECB and EU LTRO and QE for Dummies: Or, Make These Trades / Stock-Markets / Quantitative Easing
By: Money_Morning
Shah Gilani writes: Pssst! Do you want to make some money trading some initials? Real easy money?
For real. I just made my subscribers 382% trading these initials. And we’re not done. After closing out our 382% gain, we’re in the same trade again, and we’re up 180% in just a few weeks – and still going.
We’re also in a conservative trade, trading the same initials mind you, and we’re up 41% there.
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Friday, January 23, 2015
Market Should Not Doubt' Mario Draghi ECB QE / Stock-Markets / Quantitative Easing
By: Bloomberg
Larry Fink, CEO and Chairman of BlackRock, spoke with Bloomberg TV's Erik Schatzker and Stephanie Ruhle today at the World Economic Forum's annual meeting in Davos, Switzerland. Fink discussed the European Central Bank's asset-purchase plan and the outlook for the euro-dollar exchange rate, Federal Reserve policy and the U.S. economy. He also spoke about the Swiss National Bank's decision to abandon its currency cap.
Reacting to the ECB's quantitative easing announcement, Fink said: I think we've seen over the last few years you have to trust in Mario...the market should not doubt Mario. He's been able to pull this through...This monetary policy is going to keep the euro weak. And I think a weakened euro will allow European companies to improve. So I do think the European economies will be marginally better this year than last year."
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