The wild card right now is the Fed's latest quantitative easing exercise, which as best as we can tell right now, hasn't done much to elevate stock prices. We suspect the reason why is because of how the Fed has executed it so far, focusing on purchasing mortgage backed securities as opposed to the outright massive purchases of U.S. Treasuries that characterized previous rounds, which provides a more direct boost to equity prices by lowering long term interest rates.
Political Calculations
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