Federal Reserve’s Balance Sheet and “Not QE”

Federal Reserve’s Balance Sheet and “Not QE” Welcome to “Not-QE”. The Fed’s balance sheet is expanding at fastest rate since the Great Financial Crisis. Image: US Global Investors

G4 Central Bank QE and Emerging Markets Equities

G4 Central Bank QE and Emerging Markets Equities This chart suggests that G4 central bank stimulus would support emerging markets equities in 2020 (R = 0.94 since 2016). Image: BofA Global Research

U.S. Zombie Companies and Fed Ended QE

U.S. Zombie Companies and Fed Ended QE Since the Fed ended QE, U.S. zombie companies have underperformered the market. Image: Arbor Research & Trading LLC

QE and Bond Yields

QE and Bond Yields Chart suggesting that bond yields tend to move higher after quantitative easing starts. Image: Danske Bank

Equity Markets and QE

Equity Markets and QE Chart suggesting that equity markets tend to move higher during QE periods. Image: J.P. Morgan

U.S. Bond Yields and QE

Bond Yields and QE Chart suggesting that bond yields tend to move higher after QE starts. Image: J.P. Morgan

10Y-3M Treasury Yield Spread Adjusted for QE and QT

10Y-3M Treasury Yield Spread Adjusted for QE and QT Adjusted for quantitative easing (QE) and quantitative tightening (QT), the 10-year minus 3-month yield curve may have inverted in December 2018. Image: Morgan Stanley Wealth Management

QE to Infinity and Beyond?

QE to Infinity and Beyond? Analysts say the Fed will resume and buy “just” U.S. Treasuries next year. The Fed’s balance sheet should rise past its historic peak. Image: Bloomberg – Cartoon: Hedgeye Risk Management LLC

Central Banks – Market Risk Trend and Economic Policy Trend

Central Banks – Market Risk Trend and Economic Policy Trend Chart suggesting that risk assets’ sensitivity to political risks has been neutralized by central banks’ QE and dovish monetary policy stance. Image: Image: BofA Global Research