Notice the extremely telling correlation between the Federal Reserve resuming asset purchases in 2019 while the stock market was high and the economy was strong going hand in hand of distantly new highs in S&P 500. This correction resulted from a correcting bubble in stock market valuations. This begins a bear market, surely. A partial rebound from here, perhaps, before continued weakness in stock prices.
Did anyone realize that this bubble was partly due to Fed treasury purchases stimulating demand for stocks as yield diminished unnecessarily?
Both of the attached files are charts, one symbolizes the amount of US government dollar-debt the Fed owned. As operations for stimulus winded down up to summer-2019 with the Fed buying treasury bonds less they inexplicably began buying more. The S&P chart illustrates stock market performance beginning when the Fed resumed buying bonds.............
Did anyone realize that this bubble was partly due to Fed treasury purchases stimulating demand for stocks as yield diminished unnecessarily?
Both of the attached files are charts, one symbolizes the amount of US government dollar-debt the Fed owned. As operations for stimulus winded down up to summer-2019 with the Fed buying treasury bonds less they inexplicably began buying more. The S&P chart illustrates stock market performance beginning when the Fed resumed buying bonds.............
Attached Images
Count Of Antwerp