And hold on to what you got
Once the music hits your system
There's no way you're gonna stop
--Miami Sound Machine
Updated graph marking movements of the S&P 500 (SPX) in relation to various FOMC intervention programs since 2008:
Suggests diminishing returns to the Fed's stimulus programs.
Would be interesting to see a plot of SPX vs Fed balance sheet expansion. Would think the the Fed is surely getting less SPX pts per dollar as they ramp QE.
position in SPX
.....the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens.
ReplyDelete~FOMC Press Release, March 20, 2013