The S&P 500 has tripled off the March 2009 lows and took a mere 65 days to go from 1900 to 2000 today. As WSJ notes [5], the S&P needed 11,208 trading days to reach 100 for the first time... Here’s a look at S&P 500 milestones throughout the decades... and how Bernanke predicted 2,000 in March 2013.
[6]
Source: The Wall Street Journal [5]
Which has left stocks "rich" to The Fed as they have more than priced-in balance sheet expansion that is left...
[7]
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And If you are surprised by any of this... Bernanke signalled it all way ahead... in March 2013!!! [8]
as we said at the time...
Given his reiteration last week that the Fed is here to stay - and his fellow dovish lapdogs' confirmation that we can all rest assured that our 'wealth' is being protected - we know that the Fed balance sheet will hit around $4 trillion [9]by year-end. Given the hyper-correlation over the past three months between US equity performance and the daily pump of POMO, it appears clear that Bernanke's target for the S&P 500 by year-end is around 2000 (unless of course you think there is even a little bit of market efficiency and discounting left in the world).
Is this what the Princeton Professor is looking for?
[10]
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But it's gonna be over soon.
