Everyone knows the Fed’s quantitative easing program calls for them to buy $85 billion worth of bonds and mortgage backed securities each and every month. And the connection to market performance is clear.
To put this figure in perspective, $85 billion is DOUBLE the annual profits of Exxon Mobil. It’s also equivalent to ALL the money Chinese tourists spent overseas on holidays last year.
It’s also just over $1 trillion annually… which coincidentally is the headline budget deficit that the US federal government squanders each year.
With so much money being pumped into the market, stock investors should all have busts of Ben Bernanke next to their trading screens.
Read the complete article at The Sovereign Man here.
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.