Talking about Stocks Rally With Bernanke Bond Purchases as QE Buoys S&P 500 – Bloomberg

 

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Stocks Rally With Bernanke Bond Purchases as QE Buoys S&P 500 – Bloomberg

Most of the 47 percent stock rally during the past two years came on days when the Fed pumped money into markets through bond buying, according to data compiled by Bloomberg. Since the $1.7 trillion first round of quantitative easing began on Dec. 5, 2008, the Standard & Poor’s 500 Index of stocks has climbed a combined 267 points on the 212 days when the Fed was adding stimulus, compared with 128 points on the 297 days when it wasn’t. “We took action,” said Hembre, who helps manage more than $86 billion at the unit of U.S. Bancorp in Minneapolis. “The primary benefit of quantitative easing ends up supporting the price of riskier assets, not necessarily that of Treasuries.”

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