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Global Equities Are Up 32% From 2018’s Lows. Does Anyone Really Care About The ‘Why’?

"What difference does it make?"

"What difference does it make?"
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4 comments on “Global Equities Are Up 32% From 2018’s Lows. Does Anyone Really Care About The ‘Why’?

  1. David says:

    Sure, we’re up 32% since the beginning of the year, but let’s not forget that we’re also up “just” 32 percent since Q1-17. It’s still a nice run, but pardon me if I’m not dancing because my “409k” has doubled.

  2. Jeff Rudd says:

    Agree. It’s not QE. It’s worse. The BIS report and a deep-dive into Sept rate spike event makes clear the Fed was unwilling to let the market determine the value of lending an “overnight dollar.” BIS notes the four G-SIBs pulled back from the repo market, leaving hedge funds in trouble. Essentially, the Fed nationalized the repo market–w/o describing truthfully its activities–to save hedge funds from financial pain. As others have noted, now they’re stuck b/c they lack the guts to let the market shoot down a few hedge funds, banks, and equity prices. And the hedgies and the rest of know the Fed lacks the guts to step back. Enjoy the ride and the ridiculous narratives that attribute causation to something other than Fed-fueled liquidity, mainlined into traders’ computers.

  3. Is it that complicated? What else is there to invest in for the common person to keep ahead of the real rate of inflation?

  4. With yields nearly 2%, US Ts relative to other government bonds are much higher yielding. And their us simply too much liquidity in the system for yields to spike up. A 4-12% correction is likely in H1 without yields getting wacky.

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