How Easy Money Drives the Stock Market
As the money supply fluctuates, so does the demand for money and for goods and services. We see this in the stock market, but the effect is not instantaneous, and we must be mindful of the time delay.
As the money supply fluctuates, so does the demand for money and for goods and services. We see this in the stock market, but the effect is not instantaneous, and we must be mindful of the time delay.
Not only are stock markets near all time highs, the amount of margin debt is also at all time highs. Margin debt is money borrowed to leverage the purchasing power of portfolios.
March’s economic report from the National Association of Credit Management dropped to the lowest it’s been this year. The combined index fell from 53.2 in February to 51.2 this month.
"In other words, you cannot accurately forecast a recession or financial panic by looking at either the announcement or the completion of the world’s tallest building"
So The Economist apparently does not think too "highly" of my skyscraper theory
Europeans have long been fearful of the prospects of price deflation, but now that it has arrived they have embraced it.
The Fed has been messing with interest rates for a century and suddenly they have forgotten how to raise interest rates?
“So let us not talk falsely now, the hour is getting late.” (Bob Dylan, All Along the Watchtower, 1967)