Central Banks' Slingshot of Equities

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Does this picture tell a 1000 words or should we add a few of our own? Getting straight to the point, each of the last 3 monetary policy responses from the Fed generated a gain of +25 to 35% -- pure QE or Operation Twist. This months double strike from the Fed & ECB stands out from the uniqueness of each individual policy action.

DRAGHI'S s Outright Market Transaction programme stands out from prior bond purchase plans via its ability to combine conditionality (countries must abide by Troika rules rather than selecting bonds arbitrarily), sterilisation (counter inflationary concerns by later mopping up liquidity) and unlimited purchases (another way of capping bond yields without specifying it).

BERNANKE'S QE3 is a first because it is an open-ended program --buying $40 bn in new paper until basically unemployment drops and stays down. In other words, the Fed is willing to see higher inflation surpassing 2% with the aim of reducing unemployment below the stubborn 8% figure. ONTO THE CHART, regaining the 2007 highs may be a question of "when" rather than "if". Let's revisit this in mid-November, once the noise from the US elections clears away