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The Failure Of The Economic Establishment's Grand Experiment
Via BusinessCycle.com,
Grand Experiments That Are Too Big To Fail
As the great and the good gathered in Davos to ponder the next big thing, the pummeling of global equity markets brought key assumptions into question. Yet, their collective heads stayed buried in the snow with regard to the big ideas from years past, namely, the three grand economic experiments launched by the U.S., Japan and China following the Global Financial Crisis.
Want To Know What The S&P500 Does Next? Just Look At The Fed's Balance Sheet
Over the past 7 years, we as well as others (if not those who believe in magic money trees, or managing other people's money while blogging) have repeatedly said that when it comes to "market" returns, look no further than the size of the Fed's balance sheet - the single best indictor of where the S&P500 is headed to next.
That is precisely what DB's Jim Reid did overnight. This is what he says:
Today we update a chart and table we used a fair amount in 2013/4 looking at the Fed balance sheet and equity and credit performance.
"Nobody Really Knows Anything Right Now"
Submitted by Nicholas Colas of Convergex
Three Fed Thoughts, One Conclusion