Back in April, when the S&P500 was at 1580 we forecast that the price target on the S&P500 for the global central bank syndicate was 1900. The S&P closed the year at 1850, just barely missing said target, which was merely a function of the correlation between the stock market and the straight-line, diagonally expanding consolidated central banks’ balance sheet (yes, it is a “market” for idiots, but such is life under central planning… while it lasts).
Incidentally, there was a time as recently as two years ago, when saying the Fed is merely propping up stocks, was blasphemous in polite economist circles. Since then even the most tenured economists (not to mention the US Treasury) have finally admitted the truth, and in the process none other than JPMorgan itself has just issued a chart titled “The era of central bank-driven equity rallies.“
So in the spirit of the holidays, and since nobody even pretends anymore that Mr. Yellen‘s only mandate is to push stocks higher, will the Fed finally be kind enough to release a newsletter each morning laying out where the S&P will close that day? The Fed could use the monthly $29.95 subscription fees toward paying for Kevin Henry’s et al Bloomberg terminal and REDI fee.
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/NjyzpCGFTWw/story01.htm Tyler Durden