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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 389.75+0.5%4:00 PM EST
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To: John Pitera who wrote (134302)6/23/2017 11:16:08 AM
From: bart131 Recommendation

Recommended By
John Pitera

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I think I saw that article a while back about the 3 US folk who started ZH and the one who exited. It sure made more sense than ZH backing by Russia based at a brothel in Moscow. ;) The more I read ZH, the more I saw their shortcomings, including the many Zionist issues and raw hatred, plus just plain getting stuff like reverse repos just plain wrong.

As far as reasons for the boom in stocks since 2009, would that it were simple and could be boiled down to just a few factors like Fed activities, but they can't be ignored either. QE to me was more about sentiment management to push stocks and provide "support" than any other single factor.

One must also layer in the Fed's daily Securities Lending OMO to get a fuller picture. Watching the 10 year Treasury against the SecLend daily OMO amounts can easily give a picture of what the Fed is trying to do on the shorter term. I think this very much applies, and has for decades:
"...the Federal Reserve has the capacity to operate in domestic money markets to maintain interest rates at a level consistent with our economic goals” -- Ben Bernanke, Fed Chairman, March 26th 2007 to the Senate Banking Committee

As far as other stocks, etc. support, there's also other daily OMO support from repo programs like TOMOs - Temporary OMOs. They've run from $70B to $400B per day and implemented via Primary Dealers during the last two years and have a pretty high correlation with indexes like the S&P 500, especially during larger dips like the one last January.

So while the Fed and other CBs are not the be-all and end-all on "support", they're far from having zero effect.

I'd post supporting charts but my old site is currently down while the new owners renovate it.
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