Every Equity Market Hour... The Federal Reserve Buys... Face Value... 878M Of Bonds
Q2 2021 hedge fund letters, conferences and more
Headline: Equity Markets Are Comfortably Numb With QE “Forever”
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The Federal Reserve’s CURRENT Buying Binge =
$120B Bonds Bought [$80B Treasuries + $40B Mortgages] EVERY Month…Perfectly Translating To:
- $5.7B Bonds Bought/EVERY Trading Day
- $878M Bonds Bought/EVERY Trading Hour
- $14.3M Bonds Bought/EVERY Trading Minute
- $239.3K Bonds Bought/EVERY Trading Second
[Presumes…252 Trading Days/Year]
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The Balance Sheet Of The Federal Reserve [graphically represented below]…While Strategically Dramatic…
Tremendously Understates Tactical Equity Market Impact…Since The Spring Of ’09
As QE’s [Flow + Stock] Elasticity To Equity Prices [see below]…Over The Same 12+ Year Time Frame = Quite SUBSTANTIAL
Article by Global Slant
