We’ve been saying for quite some time now that the US equity market’s seemingly inexorable (until this week) tendency to rise to new highs in the absence of the Fed’s guiding hand is almost certainly in large part attributable to the fact that in a world where you are literally guaranteed to lose money if you invest in safe haven assets such as negative-yielding German bunds, corporations can and will take advantage of the situation by issuing debt and using the proceeds to buy back stock, thus underwriting the rally in US equities. 244 more words
Tags » QE
A selection of my recent observations in client notes, speeches and radio appearances, which have provoked sufficient reaction to merit a further airing.
Fed loses ‘patience’ … 1,887 more words
We always watch bonds closely. In the beginning of this blog’s history some readers might have called our fixation obsessive, so we diversified but never stopped watching. 482 more words
25 Mar 2015 (TheAge) - Central banks' QE fuels 'insanity trading', says US investment expert Ed Yardeni
(25 March 2015, The Age, BusinessDay, p39, Mark Mulligan)
‘Extreme easing of monetary policy has pumped up the supply of goods and services but failed to stimulate the demand to match it, an investment bank veteran and former US Federal Reserve economist says. 44 more words