This Will Create The Next Round Of Panic In Stock Markets Across The Globe

Tuesday, October 30, 2018
By Paul Martin
October 30, 2018

This will create the next round of panic in stock markets across the globe.

Follow The Money
October 30 (King World News) – Here is a portion of what Peter Boockvar wrote today as the world awaits the next round of monetary madness: We know of course that fundamental economic and earnings factors are key factors influencing stocks but we also know that market moves particularly this cycle ebb and flow with changes in monetary policy.

I want to refresh everyone on what happened in the S&P 500 after each time we saw a notable change in rates and QE/QT.

1) QE1 ended on March 31st 2010, stocks rallied for three weeks thereafter and then fell 17% peak to trough thru early July.

2) QE2 soon followed and ended on June 31st, 2011. After topping on July 7th, the S&P 500 fell 19% peak to trough by early August.

3) QE3 began in late 2012 and ended on October 31st, 2014. From mid September 2014 thru October 15th that year, the S&P 500 dropped 10% and then was saved by James Bullard saying maybe they won’t end QE two weeks later. Helping to offset the Fed’s QE in terms of impacting markets thereafter, the ECB in Q1 2015 began its ramp up of its QE program, joining the BoJ. Also, negative interest rate policy from the ECB began in June 2014 and went deeper below zero in the coming years. The BoJ went negative on January 29th, 2016.

The Rest…HERE

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