Ep. 945: Parabolic Up with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Effects of Fed Easing on the Stock Market
The Fed buys interest bearing securities and replaces them with zero interest based money. You can try to get out of cash by buying stocks, but only by bidding up stock prices enough for a seller to accept the cash in return. The fact that they have a zero interest bank balance doesn't mean they change their consumption or retirement plans. It just means someone in the economy has more psychological discomfort because every dollar created by the Fed has to be held by someone at every moment in time until it's retired.
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