Tag: Nasdaq Composite

More Than Tiny Bubbles: Policy-Driven Market Distortions

More Than Tiny Bubbles: Policy-Driven Market Distortions

We highlight some of the bubbles (some call it the "Everything Bubble"), caused by the ultra-loose fiscal and monetary policies that have distorted markets since April 2020. The longer Powell & Company wait to taper and eventually raise interest rates, the more difficult it will be to reel in the price inflation caused by the … Continue reading More Than Tiny Bubbles: Policy-Driven Market Distortions

The Most Radical, Irresponsible Monetary Policy In U.S. History

The Most Radical, Irresponsible Monetary Policy In U.S. History

Federal Reserve Chairman Jerome Powell has spearheaded the most radical monetary policy in American history. From zero percent interest rates to Quantitative Easing to Corporate Security Asset Purchases to various lending facilities, to subsidizing fiscal spending programs and deficits - The Fed's resume is not one to be proud of. Under Powell the Fed has … Continue reading The Most Radical, Irresponsible Monetary Policy In U.S. History

Strong Correlation Between M2 Growth & NASDAQ Composite Growth

Strong Correlation Between M2 Growth & NASDAQ Composite Growth

We compared the year-over-year percentage change in M2 (measured each month) to the year-over-year percentage change in the NASDAQ Composite (measured each month on a one-month lag) and found a strong correlation as measured by a correlation coefficient of 81.7%. Our analysis covered the percentage change in M2 from April 2020 (when the money supply … Continue reading Strong Correlation Between M2 Growth & NASDAQ Composite Growth

The Forever Bubble-Blowing Fed

The Forever Bubble-Blowing Fed

The Fed's behavior in recent months has been something out of a horror movie. The low interest rate, expansionary monetary policies introduced by former Fed Chair Bernanke and continued by former Fed Chair Yellen have dramatically accelerated under current Fed Chair Powell. Bernanke dealt in $Billions, Chairman Powell prefers $Trillions. Click any of the charts … Continue reading The Forever Bubble-Blowing Fed

TEK2day Weekend: Economic Charts<span class="badge-status" style="background:red">Premium</span> 

TEK2day Weekend: Economic ChartsPremium 

We have charted a number of economic data sets. Each chart - some more so than others - speaks to the current weakened economy and/or illustrates the inflated equity valuations we are experiencing. The latter in our view is not related to fundamentals but to the enormous liquidity the Fed has pumped into the economy. … Continue reading TEK2day Weekend: Economic ChartsPremium