We can debate hours about the good the bad and the ugly of the monetary policies implemented by the ECB, the BOJ and the FED the last few years. Anyway, what we need to keep in mind is that any action…. provocate some reaction at some point in time.
The QE experiment has shown that there has been a clear correlation between the POMO days and the SPX index return but as we all know.. correlation works until one day… they break down. Acually the last few years have been very interesting in breaking down correlations and market behaviors which could help us determine some course of action we could take and i can say that on my side I have misread several signals a few times (hopefully more missing opportunities rather than losing hard).
Anyway… what I observe and find interesting about QE is that it seems that we…
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