We will be looking to see how the stock market performs without the monetary heroin that the Federal Reserve has been providing to it.
Since November 2008, the Fed has created about 3.5 trillion dollars and pumped it into the financial system. An excellent chart illustrating this in graphic format can be found right here.
Pretty much everyone agrees that this has been a tremendous boon for the financial markets.
As you will see below, even former Fed chairman Alan Greenspan says that quantitative easing was “a terrific success” as far as boosting stock prices. But he also says that QE has not been very helpful to the real economy at all.
In essence, the entire quantitative easing program was a massive 3.5 trillion dollar gift to Wall Street …. http://investmentwatchblog.com