Looking Outside the U.S., an EXPLOSIVE Move is Underway

Over the last week I’ve outlined how the Fed has made it clear that it wants stocks to go into a bubble.

We know this because:

  1. Fed Chair Jerome Powell stated that the Fed won’t raise rates again until it sees a “really significant move up in inflation that’s persistent.”
  1. The Fed stated it doesn’t see any “financial imbalances” AKA bubbles.

So the Fed is broadcasting that it won’t be raising rates again for a LOOONG time… at the same time that it’s claiming stocks are decidedly NOT in a bubble – despite one of the biggest bull markets in history.

And bear in mind, the Fed said this as stocks were hitting new all-time highs.

All time highs chart

And all of this is happening while the Fed is engaged in a $60 billion per month QE program as well as an overnight repo program of $125 billion and a term repo program of $45 billion.

No rate hikes, no signs of a bubble, and a TSUNAMI of liquidity… this is as close as you can get to the Fed broadcasting that it wants stocks to enter a bubble.

Of course, the U.S. stock market will benefit from this, but so will other markets as well.

The Fed’s Bubble is a Global Phenomenon

Take a look at Emerging Markets (EEM):

Emgerging market stocks

Germany’s DAX (DAX):

German stocks

And Brazil’s Bovespa:

Brazilian stocks

You get the general idea.

My point is this: With the Fed and most other central banks now easing monetary conditions, global stock markets are entering a melt up. Stocks are most responsive to liquidity. And central banks are providing a tsunami of it!

Until then…

Best Regards,

Graham Summers
Editor, Money & Crisis

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Graham Summers

Editor Graham Summers has spent the last 15 years building a reputation as one of the most sought after and highly respected investment strategists on the planet. His work has been read and quoted by former Presidential advisors, award-winning institutional analysts, U.S. Senators, and more. He’s one of the few analysts on the planet to...

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