8 days ago • 1:19 min
For a simple explanation of why we saw one of the biggest stock market bull runs on record between 2009 and 2022, look no further than this chart. It shows the total amount of assets the Federal Reserve (the Fed) had on its books since the start of the 2008-09 global financial crisis.
The chart shows how the Fed expanded its balance sheet, buying up massive amounts of Treasury bonds in the open market, driving up the prices of those bonds and driving down their yields. What’s more, the cash the Fed creates to buy those bonds increases the money supply. The whole process, which is formally called “quantitative easing” but is colloquially referred to in the market as “printing money,” makes it a lot cheaper to borrow money – so businesses can take out super-affordable loans to grow their op
With the VIX so low, you might want to take a cautious approach.
This chart suggests we may be at a turning point.
With its exchange steadily bringing in money, GMX has been trying its best to break out.