Etraders are now officially holding the bag, betting ALL IN on the impossible.
Having artificially levitated stocks for several years straight, as a proxy for a real economy, the Fed has now officially transferred title in the over-leveraged, over-valued stock market, to Etraders. Which is very considerate, because Etraders only like stocks at the top, they hate them at the bottom. Now they just need the economy to float back from China to justify their "investment"...
They only love stocks at the top. They hate them at the bottom:
A Brief History of Printing Money to Buy Stocks
For over a year now, correlation between stocks and the Fed balance sheet has been pinned at 95% (see lower pane):
1% of upside. 100% of downside. Correlation 95%. Now featuring an interest rate rise sooner rather than later, as well. Position accordingly. You can be assured that Goldman Sachs already has.
Oh, that's right, Goldman Sachs already did get out, as soon as they saw that Etraders were piling back into the market. It's nice to have someone with deep pockets supporting the market when you want to get out, like the Federal Reserve...
Printing money to buy stocks. The dumbest fucking idea in human history: