What should definitely be the ideal best stock market indicator index known to man has blessed the stock exchange. The Sports Illustrated Swimsuit Issue index is yelling for a huge year.
As soon as an American graces the cover, similar to this year, the stock exchange goes up 88 percent of the time to get a mean gain of 14.3 percent.
Obviously, as much pleasure as this index is why not we use the 2nd greatest index out there, “Do not fight the Fed” (actually the first).
This indicator only says that if the Federal Reserve maintains stimulating the economy through low rates of interest and free cash, the additional liquidity pushes stocks higher.
According to Barron’s, the present balance sheet of Ben Bernanke’s Federal Reserve is $2.9 trillion, mostly by QE applications, Twists and lasted asset purchases.
And paying back it the issue is. The US and Europe needed a post-WWII baby boom in precisely the exact same period, and those crazy kids (yes ) just made a lot of promises to ourselves to get when we got old.
Now the baby boomers ‘ are at or close to retirement age, it is time to pay the piper. What made things worse was that the huge borrowing by customers which generated the largest debt bubble in the history of time. This debt bubble, as all debt bubbles, will take years to unwind and deleverage.