just for interest ...How stimulative is monetary policy right now?
The most important correlation to the stock market today is the Fed’s balance sheet. The power of the Fed has become so acute that it has replaced the economy as a principle influence over the stock market to the point where there is only a 7% correlation between GDP and the S&P 500. Historically, in any given cycle that relationship was anywhere between 30% and 70%. The amount of easing that the Fed has done since the beginning of October by expanding the balance sheet is just about as strong in terms of basis points as the three rate cuts they engineered last year. They have cut rates almost a 150 basis points when you look at it on an equivalent basis.
Got Gold? - David Rosenberg Warns "We're Going To Have Helicopter Money"
January 17, 2020
at https://www.zerohedge.com/markets/got-gold-david-rosenberg-warns-were-going-have-helicopter-money
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