Tag Archives | tapering

FED in the driving seat

The chart below shows how the FED is firmly in the driving seat for the U.S stock markets through the monthly growth of their balance sheet, primarily through the purchase of U.S Treasuries and Mortgage Backed Securities. You can clearly see why talk of tapering sends shudders down everyone’s spine: It is interesting to note that in the prior economic expansion, the economy and company earnings clearly were in the driving seat – the good old days when good news […]

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