When Bonds & The Dollar Sink, The Only Thing That Can Save Stocks Is QE

In the last 45 years, there have been seven periods of persistent US dollar and Treasury bond weakness and as BofAML notes, during six of those periods, stocks have been pressured significantly lower.

This could be a problem, as it's happening again... and stocks are beginning to wake up to it...

There has only been one period in history when falling dollar and bond prices did not lead to slumping stocks...

And that was when QE was expanded drastically in March 2009.

So - were this morning's warnings from Dudley and Rosengren about the likelihood of more QE more prophetic than many suspect?

Comments

Mr_Potatohead Fri, 02/23/2018 - 17:03 Permalink

" When Bonds & The Dollar Sink, The Only Thing That Can Save Stocks Is QE "

So QE is what it will be after the sheeple get fleeced by a scary correction to cover short positions created when the sheeple got ahead of the market.

In case you haven't figured it out, there's going to be QE until the day the dollar dies.

NoBiggerX Fri, 02/23/2018 - 17:47 Permalink

Once again, ZeroHedge look like a 'Sky is Falling' assbaby. Every day comes their shit doomsday stuff, but, today, again, we have a stirling performance on the stock market.  HEY ZEROHEDGE ... ARE YOU NOT ENTERTAINIED. OK, Monday is your chance to start your dumbfuck Chicken Little chickenshit and start telling us how everything is going to all come to an end, you dumb fucks.

Let it Go Sat, 02/24/2018 - 08:55 Permalink

Decades ago Fed Chairman Paul Volcker able to bring inflation back under control and in doing so he broke the back of those speculating that metal prices would head higher. This lesson from the past that has been forgotten by many investors.

Decades of interest rates drifting ever and ever lower have allowed many investors and the general public to forget the power of high-interest rates exert on defining prices. More about this interesting time in history in the article below.

 http://Metal Prices And Higher Interest Rates.html