Chapter 1693 (2/2)
“。。。 Thank you, Andy. The American people will remember what you did today! Don't worry. I just negotiated with the chairman of the Federal Reserve. The Federal Reserve will issue another ”quantitative easing” monetary stimulus policy with a total scale of about $1 trillion in the near future.
Believe me, it's all over, like you said, waiting for the fog to go away, after the wind and rain, the sun will be more brilliant
Andy hung up with a meaningful arc around his mouth, his eyes narrowed slightly, looking far away.
”Is the sun brighter... Ha ha. ”
When people experienced the thrilling rapids, they came to a wide lake cheerfully, and everything seemed to have calmed down.
At this time, only those standing high will suddenly find that, not far ahead of the river, across the lake is a daunting super waterfall.
It's within Andy's and his think tank's expectation that the Federal Reserve will launch another ”quantitative easing” monetary stimulus policy in the near future, and of course, it's within the market's expectation.
However, in the period after the outbreak of the financial crisis, the global central bank has cut interest rates hundreds of times, released more than ten trillion dollars of quantitative easing, and the global interest rate has fallen to the lowest level in many years. This super loose monetary policy can successfully prevent debt default and deflation, and also can give birth to one of the best bond and stock bull markets in history.
But monetary easing is just like taking Y-A movies. It's addictive, it's addictive, it's crazy, and it finally collapses.Because in Andy's view, if we really want to end the huge impact of the financial crisis, the only reason for the rise of stock prices can only be the global liquidity stimulus in the form of central bank printing or quantitative easing.
But like any Ponzi scheme, with the end of the feast, the stock market and bonds will collapse again.
”A cycle of ten years may not be a conjecture...”
Andy sits at his desk and looks at the investment catalog sent by alvette. At this time, Andy is not the financial Xiaobai at the beginning. He has his own set of judgments.
When the S & P 500 index plummeted, it was a good time to buy gold, because the Fed would then change policy.
Turn to stimulating the economy.
The US dollar began to rebound in April 2008, and now it has almost reached the peak in March 2009. At this time, the stock market bottomed out and rebounded. If the Federal Reserve announced quantitative easing policy, we can imagine that the US dollar will start to fall.
The rising stock index futures and the falling dollar exchange rate are the main focus of Andy's investment next.
The news of Citi's unexpected profit greatly eased the market's worries about the huge loss of the banking industry. In the afternoon, U.S. stocks led by banking stocks, the main stock index rebounded strongly.
In addition, Bernanke said in a speech one hour before the closing that it was important to solve the valuation problem of non-performing assets. He said the shortcomings of accounting standards based on market value should be identified and improved. At the same time, Bernanke also elaborated the idea of establishing a systematic risk supervision institution. Investors were encouraged by Bernanke's comments, which met market expectations.
Driven by Andy Smith's massive funds regardless of cost and various good news, by the end of the New York stock market, the average price index of 30 industrial stocks of Dow Jones rose 379.44 points, or 5.8%, to 6926.49, up 5.8% from the previous trading day. The standard & Poor's 500 stock index rose 43.07 points, or 6.4%, to 719.60. The Nasdaq composite index rose 89.64 points, or 7.1%, to 1358.28.
Andy watched the real-time picture of the New York Stock Exchange broadcast on TV. Some stock exchanges couldn't wait to put out the slogan ”the bull market has come back” 10 minutes before the closing, but he smiled proudly.