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Proof: Fed Balance Sheet IS The Stock Market!

  • Written by Syndicated Publisher 43 Comments43 Comments Comments
    November 1, 2011

    Ever since unprecedented Fed intervention began in 2008, there has been a high correlation between the stock market and the Fed’s balance sheet level. If there was ever a question to the correlation between the two, the following two graphics should make their relationship crystal clear.

    fed balance sheet
    Source: Bloomberg

    fed balance sheet oct low
    Source: Bloomberg

    Image: Flickr (licence attibution)

    About The Author

    Chris graduated magna cum laude with a B.S. in Biochemistry from California Polytechnic State University, San Luis Obispo. He joined PFS Group in 2005 and is currently pursuing the designation of Chartered Financial Analyst. His professional designations include FINRA Series 7 and Series 66 Uniform Combined State Law Exam. He manages PFS Group’s Precious Metals Managed Account, Energy Managed Account, and Aggressive Growth Managed Account. Chris also contributes articles and Market Observations to Financial Sense and co-authors In the Know—a weekly communication for Jim Puplava’s clients only—with other members of the trading staff. Chris enjoys the outdoors.