Quantitative Easing and the Stock Market

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Quantitative easing is when the central bank goes out into the market and buys assets. The money can't go into the stock market, except in the sense that t increases the propensity of people like me to not want to have it. As more people are transacting in the stock market, there is a greater demand for stocks relative to cash. So at the margin, the price of the stocks goes up.

Israel and Hamas have agreed to a ceasefire that would end an 11-day conflict that has claimed the lives of at least 230 Palestinians and 12 Israelis. And WeWork’s losses almost quadrupled to $2.1bn in the first quarter of this year as the co-working company haemorrhaged more than a quarter of its members and shelled out hundreds of millions of dollars to restructure its property portfolio, and the FT’s Rob Armstrong talks about quantitative easing and stock prices.

Israel and Hamas agree a ceasefire after 11 days of fighting

https://www.ft.com/content/8aa0bee9-85e7-4cdf-82d5-e23475312f1c

WeWork loses $2.1bn and a quarter of its members as lockdowns bite

https://www.ft.com/content/60ea2f72-586f-4f3e-b153-3455b93539b8

Rob Armstrong Unhedged: QE and stock prices

https://www.ft.com/content/2db4a985-e053-4322-91b3-6c9793fd1c6c

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