Mortgage backed securities went up from $852 billion to $893 billion in the month of November 2012. That's a $40 billion increase, precisely right on schedule according to its press release in September 2012, where it stated to buy $40 billion in MBS's each month.
If we put together Chart 1 and Chart 2, we can find a significant correlation.
The same can be said on gold prices Vs. Federal Reserve balance sheet (Chart 4).
You know what this means, start to buy equities and gold as the correlation between stocks/gold and the federal reserve balance sheet is a fact.
 |
| Chart 1: Federal Reserve Balance Sheet |
 |
| Chart 2: S&P 500 |
 |
| Chart 3: Federal Reserve Balance Sheet Vs. S&P |
The same can be said on gold prices Vs. Federal Reserve balance sheet (Chart 4).
 |
| Chart 4: Gold Vs. Fed Balance Sheet |
You know what this means, start to buy equities and gold as the correlation between stocks/gold and the federal reserve balance sheet is a fact.
0 comments:
Post a Comment