Share your opinion about this

Like
Comment
Favorite

FGTay
2023-06-19

Share your opinion about this news…

This Incredible Chart Shows the Close Relationship Between the S&P 500 and Fed Liquidity

Earnings, schmearnings. Is what really matters just liquidity?This incredible chart, from Apollo Global Management chief economist Torsten Slok, shows the close relationship between S&P 500 performance and net Federal Reserve quantitative easing since the pandemic began.Here, Fed QE is defined as the Fed's total assets minus the balance of the Treasury General Account as well as the temporary cash added or drained through overnight reverse repos."Since SVB collapsed, the Fed has been adding liquidity, and the S&P 500 is up more than 10%. The high correlation between Fed net QE and the S&P 500 seen in the chart below suggests that Fed liquidity is a crucial driver of the stock market," said Slok.The Fed would dispute that the emergency lending programs put in place are a form of quantitative easing, but nonetheless, its balance sheet has expanded.Slok also warned, however, that what the Fed gives, the Fed can take away.U.S. markets are closed Monday in observance of the Juneteenth hol

This Incredible Chart Shows the Close Relationship Between the S&P 500 and Fed Liquidity

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

Top
Latest

No comments yet

Most Discussed

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"magic":2,"id":189004586307704,"tweetId":"189004586307704","gmtCreate":1687169218779,"gmtModify":1687169222368,"author":{"id":3581749736801918,"idStr":"3581749736801918","authorId":3581749736801918,"authorIdStr":"3581749736801918","name":"FGTay","avatar":"https://community-static.tradeup.com/news/cb7b49959072964d7ccdc00cc3b261bd","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":0,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"html":"<html><head></head><body><p>Share your opinion about this news…</p></body></html>","htmlText":"<html><head></head><body><p>Share your opinion about this news…</p></body></html>","text":"Share your opinion about this news…","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/189004586307704","repostId":2344492395,"repostType":2,"repost":{"id":"2344492395","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1687165292,"share":"https://www.laohu8.com/m/news/2344492395?lang=&edition=full","pubTime":"2023-06-19 17:01","market":"us","language":"en","title":"This Incredible Chart Shows the Close Relationship Between the S&P 500 and Fed Liquidity","url":"https://stock-news.laohu8.com/highlight/detail?id=2344492395","media":"Dow Jones","summary":"Earnings, schmearnings. Is what really matters just liquidity?This incredible chart, from Apollo Global Management chief economist Torsten Slok, shows the close relationship between S&P 500  performance and net Federal Reserve quantitative easing  since the pandemic began.Here, Fed QE is defined as the Fed's total assets minus the balance of the Treasury General Account as well as the temporary cash added or drained through overnight reverse repos.\"Since SVB collapsed, the Fed has been adding liquidity, and the S&P 500 is up more than 10%. The high correlation between Fed net QE and the S&P 500 seen in the chart below suggests that Fed liquidity is a crucial driver of the stock market,\" said Slok.The Fed would dispute that the emergency lending programs put in place are a form of quantitative easing, but nonetheless, its balance sheet has expanded.Slok also warned, however, that what the Fed gives, the Fed can take away.U.S. markets are closed Monday in observance of the Juneteenth hol","content":"<html><head></head><body><p>Earnings, schmearnings. Is what really matters just liquidity?</p><p>This incredible chart, from Apollo Global Management chief economist Torsten Slok, shows the close relationship between S&amp;P 500 performance and net Federal Reserve quantitative easing (QE) since the pandemic began.</p><p>Here, Fed QE is defined as the Fed&#39;s total assets minus the balance of the Treasury General Account as well as the temporary cash added or drained through overnight reverse repos.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0bd09010d8d45962ab377d5b112f61f4\" tg-width=\"699\" tg-height=\"393\"/></p><p>&#34;Since SVB collapsed, the Fed has been adding liquidity, and the S&amp;P 500 is up more than 10%. The high correlation between Fed net QE and the S&amp;P 500 seen in the chart below suggests that Fed liquidity is a crucial driver of the stock market,&#34; said Slok.</p><p>The Fed would dispute that the emergency lending programs put in place are a form of quantitative easing, but nonetheless, its balance sheet has expanded.</p><p>Slok also warned, however, that what the Fed gives, the Fed can take away.</p><p>&#34;With the Fed turning more hawkish and continuing QT [quantitative tightening], the downside risks to equities are growing,&#34; he said.</p><p>It should, of course, be noted that dual Y charts are inherently misleading, since the magnitude can be altered just by playing with the axes. That said, the idea that liquidity is a key driver of financial asset performance is widely shared. One of the concerns coming out of the debt-ceiling impasse was the impact of delayed Treasury bill issuance.</p><p>&#34;Since March, money market funds have seen a half trillion-dollar inflow due to bank depositors seeking safety,&#34; says John Lynch, chief investment officer for Comerica Wealth Management.</p><p>&#34;To the extent that T-bills offer a yield advantage over reverse repos (overnight loans of T-bills made by the Fed), money market funds will have an incentive to buy T-bills, thereby filling the Treasury&#39;s coffers. The Treasury Department&#39;s goal is that this funding will prove &#39;liquidity neutral.&#39; Thus far in the process, reverse repos have been working. However, if money market funds begin to favor other short-term instruments like CDs and commercial paper, pricing will come under pressure and Treasury will need to rely on bank reserves, further draining liquidity in the months ahead.&#34;</p><p>U.S. markets are closed Monday in observance of the Juneteenth holiday. The S&amp;P 500 has gained 15% this year, and the tech-heavy Nasdaq 100 has surged 38%.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>This Incredible Chart Shows the Close Relationship Between the S&P 500 and Fed Liquidity</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThis Incredible Chart Shows the Close Relationship Between the S&P 500 and Fed Liquidity\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2023-06-19 17:01</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Earnings, schmearnings. Is what really matters just liquidity?</p><p>This incredible chart, from Apollo Global Management chief economist Torsten Slok, shows the close relationship between S&amp;P 500 performance and net Federal Reserve quantitative easing (QE) since the pandemic began.</p><p>Here, Fed QE is defined as the Fed&#39;s total assets minus the balance of the Treasury General Account as well as the temporary cash added or drained through overnight reverse repos.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0bd09010d8d45962ab377d5b112f61f4\" tg-width=\"699\" tg-height=\"393\"/></p><p>&#34;Since SVB collapsed, the Fed has been adding liquidity, and the S&amp;P 500 is up more than 10%. The high correlation between Fed net QE and the S&amp;P 500 seen in the chart below suggests that Fed liquidity is a crucial driver of the stock market,&#34; said Slok.</p><p>The Fed would dispute that the emergency lending programs put in place are a form of quantitative easing, but nonetheless, its balance sheet has expanded.</p><p>Slok also warned, however, that what the Fed gives, the Fed can take away.</p><p>&#34;With the Fed turning more hawkish and continuing QT [quantitative tightening], the downside risks to equities are growing,&#34; he said.</p><p>It should, of course, be noted that dual Y charts are inherently misleading, since the magnitude can be altered just by playing with the axes. That said, the idea that liquidity is a key driver of financial asset performance is widely shared. One of the concerns coming out of the debt-ceiling impasse was the impact of delayed Treasury bill issuance.</p><p>&#34;Since March, money market funds have seen a half trillion-dollar inflow due to bank depositors seeking safety,&#34; says John Lynch, chief investment officer for Comerica Wealth Management.</p><p>&#34;To the extent that T-bills offer a yield advantage over reverse repos (overnight loans of T-bills made by the Fed), money market funds will have an incentive to buy T-bills, thereby filling the Treasury&#39;s coffers. The Treasury Department&#39;s goal is that this funding will prove &#39;liquidity neutral.&#39; Thus far in the process, reverse repos have been working. However, if money market funds begin to favor other short-term instruments like CDs and commercial paper, pricing will come under pressure and Treasury will need to rely on bank reserves, further draining liquidity in the months ahead.&#34;</p><p>U.S. markets are closed Monday in observance of the Juneteenth holiday. The S&amp;P 500 has gained 15% this year, and the tech-heavy Nasdaq 100 has surged 38%.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"VOO":"Vanguard标普500ETF",".SPX":"S&P 500 Index","IVV":"标普500指数ETF","SPY":"标普500ETF"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2344492395","content_text":"Earnings, schmearnings. Is what really matters just liquidity?This incredible chart, from Apollo Global Management chief economist Torsten Slok, shows the close relationship between S&P 500 performance and net Federal Reserve quantitative easing (QE) since the pandemic began.Here, Fed QE is defined as the Fed's total assets minus the balance of the Treasury General Account as well as the temporary cash added or drained through overnight reverse repos.\"Since SVB collapsed, the Fed has been adding liquidity, and the S&P 500 is up more than 10%. The high correlation between Fed net QE and the S&P 500 seen in the chart below suggests that Fed liquidity is a crucial driver of the stock market,\" said Slok.The Fed would dispute that the emergency lending programs put in place are a form of quantitative easing, but nonetheless, its balance sheet has expanded.Slok also warned, however, that what the Fed gives, the Fed can take away.\"With the Fed turning more hawkish and continuing QT [quantitative tightening], the downside risks to equities are growing,\" he said.It should, of course, be noted that dual Y charts are inherently misleading, since the magnitude can be altered just by playing with the axes. That said, the idea that liquidity is a key driver of financial asset performance is widely shared. One of the concerns coming out of the debt-ceiling impasse was the impact of delayed Treasury bill issuance.\"Since March, money market funds have seen a half trillion-dollar inflow due to bank depositors seeking safety,\" says John Lynch, chief investment officer for Comerica Wealth Management.\"To the extent that T-bills offer a yield advantage over reverse repos (overnight loans of T-bills made by the Fed), money market funds will have an incentive to buy T-bills, thereby filling the Treasury's coffers. The Treasury Department's goal is that this funding will prove 'liquidity neutral.' Thus far in the process, reverse repos have been working. However, if money market funds begin to favor other short-term instruments like CDs and commercial paper, pricing will come under pressure and Treasury will need to rely on bank reserves, further draining liquidity in the months ahead.\"U.S. markets are closed Monday in observance of the Juneteenth holiday. The S&P 500 has gained 15% this year, and the tech-heavy Nasdaq 100 has surged 38%.","news_type":1},"isVote":1,"tweetType":1,"viewCount":498,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":30,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}