What QE Hath Wrought (In 8 Stunning Charts)

First - always remember, what The Fed does is for Main Street, Not Wall Street (since 1987):

 

And with that in mind, here is what QE hath wrought...

S&P 500

  • SPX QE Returns: +176.23%
  • SPX Non-QE Returns: -32.73%

 

Europe STOXX 600

  • Europe STOXX 600 QE Return: +106.16%
  • Europe STOXX 600 Non-QE Return: -9.37%

 

Japan's Nikkei 225

  • NKY QE Returns: +154.39%
  • NKY Non-QE Returns: -7.49%

 

WTI Crude

  • WTI QE Returns: +119.48%
  • WTI Non-QE Returns: -105.14%

 

Spot Gold

  • Gold QE Returns: +3.31%
  • Gold Non-QE Returns: +41.59%

 

5Y5Y Inflation Breakevens

  • QE: -97bps
  • Non-QE: +204bps

 

US 10Yr Breakeven Rate

  • QE: -104bps
  • Non-QE: +275bps

 

US 10Yr Treasury Yield

  • QE: -293bps
  • Non-QE: +184bps

 

So - feel better now? Seems like QE really did the trick.

*  *  *

And now The Fed's balance-sheet is in decline...

On a rolling three-month basis, the Fed's balance sheet has been declining for the last two months.

And the three-month difference in total Fed assets has produced some interesting relationships since QE started. Below are some economic indicators that caught our eye...

 

As we noted previously, it appears Yellen is going to need to find an excuse to crank the flow once again...

 

Source: Jim Bianco of Bianco Research

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