Wednesday, November 21, 2012

Turk - This Is The Chart That Every Investor Needs To See

"...The following chart illustrates the close correlation between the S&P 500 and the securities the Federal Reserve is monetizing. The amount last week is not that big, but even small amounts can impact stock market prices. Note the small recent uptick in the red line in the chart.

The important message from this chart, Eric, is that the stock market is not rising because of good economic activity, which is understandable. The economy will not be improving until employment starts growing again. After all, that is what economic activity is all about - people working and saving or spending the money they earn. And here's the horrific part..."
 

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