QE Tag

MSCI Europe Could Fall 30% With ECB Asset Purchases?

26 Jan, by Knowledge Leaders Team in Markets

Most investors are generally aware of the reflationary effects of QE conducted by the U.S. Fed. It is reasonable to imagine that, in announcing its intent to embark on Europe’s own version of quantitative easing, the ECB anticipates a similar effect with respect to European...

Is the Fed’s Liquidity Pump Responsible for Intraday Price Action?

16 Jan, by Knowledge Leaders Team in Economy

Yesterday we highlighted that our Weak Stock Market Close Indicator indicator had surged to the highest level since 2012 and today a client made the good point that our Weak Stock Market Close indicator seemed to give more false signals when the Fed was engaging in...

Treasury Bond Yields Keep Falling as Taper Continues

18 Aug, by Knowledge Leaders Team in Uncategorized

Despite today’s modest uptick in treasury bond yields, the downward trajectory in yields coinciding with the Fed’s tapering of asset purchases remains firmly intact. Admittedly we’ve been harping on this point now for months, so we’ll keep this post short and sweet....

Credit Impulse From QE Fading

22 Oct, by Knowledge Leaders Team in Uncategorized

A good proxy for the expansion and/or contraction of the shadow banking market is the change in the amount of commercial paper outstanding.  Successive rounds of QE–represented by the expansion of the Federal Reserve’s balance sheet–have had a stimulative, but short lasting impact on the...

The FRB is the Mortgage Market

14 Oct, by Knowledge Leaders Team in Uncategorized

Over the last year, between the FRB and commercial banks, around $500 billion in net new real estate credit has been extended.  That is the good news.  The concerning part is that the FRB has accounted for over 100% of all real estate credit created....