Why Stocks Are Soaring … Even though the Fed Stopped Quantitative Easing

Saturday, November 15, 2014
By Paul Martin

November 15, 2014

The Answers Might Surprise You

Why are stocks still soaring, even though the Fed stopped QE?

Initially, the Fed arguably hasn’t totally stopped QE. And – of course – Japan’s massive QE is helping the Dow and S&P as well.

Additionally, several central banks are directly buying stocks. They include the central banks of Switzerland, Japan, Israel, the Czech Republic, and a total of 23 percent of all nations worldwide. (And it has long been rumored that the Fed buys stocks through proxies.)

Companies have also been buying back their own shares in record numbers.

Paul Buchheit notes:

In 1981, major corporations were spending less than 3 percent of their combined net income on buybacks, but in recent years they’ve been spending up to 95 percent of their profits on buybacks and dividends.

The Rest…HERE

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