Which Way Wednesday – Fed Minutes and Fed Speak to Hold Us Up
What are they so afraid of?
Gravity, I guess, as the S&P 500 is at 4,063 and the Dow is at 33,333, Nasdaq 13,561 and Russell 2,256. This isn’t just high, this is insanely high. 14,000 on the Nasdaq is 6,000 points higher than 8,000, which wasn’t even the March low but it is where Billions of Transactions valued the Nasdaq stocks between late 2018 and early 2020 – two years worth of traders didn’t want to pay more than 8,000 for these Nasdaq stocks yet now, after a year of a Global Pandemic – they are racing to pay 75% more money?
Yesterday we talked about the Fed and how they are manipulating the bond market to make it seem like there is demand for bonds and a side-effect of that is they are flooding the system with money. How? Well, in the old days, people used to EARN money and they would sometimes use it to buy bonds and the money would go out of circulation and be tied up in a T-Bill for 10 years – lowering the free money supply. The Government, of course, would spend the money but it’s money they were going to spend anyway, whether you lent it to them or not – the money you put into the bond just helped to balance the budget.
Now that’s out the window and the Government spends and you spend and Corporations spend and no one seems to worry about paying debt back and, since no one is really buying US bonds, the Fed simply prints money and uses that new money to buy bonds. That lowers the amounts of bonds in circulation, keeping their “value” up – which translates into low yields. Since the Fed buys bonds effectively from people who are rolling it over, the money goes into circulation, replacing the bonds and, since investors are not too keen on bonds – where does the money go? Stocks! See how easy economics is?
Some goes to Housing, some goes to Commodities and some actually goes into the Economy but mostly money is looking for a return and we’re sure not getting it in the banks or from bonds, so stocks win! The money going into the economy also causes inflation, of…
Provided courtesy of Phil’s Stock World.
To read the rest of this article now, along with Phil’s live intra-day comments, live trading ideas, Phil’s market calls, additional member comments, and other members-only features – Come to the winning side at Phil’s Stock World by clicking here.
To sign-up for a free trial membership, click here.
Source: https://www.philstockworld.com/2021/04/07/which-way-wednesday-fed-minutes-and-fed-speak-to-hold-us-up/?utm_source=beforeitsnews&utm_medium=feed&utm_campaign=psw-feeds&utm_content=article-link
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).