It's Not QE That's Making Stocks Rally -- It's The Actual Economy

Great chart from Deutsche Bank, via FT Alphaville, that ties a lot of loose strings together. It shows a pretty clear connection between the stock market and Deutsche’s index of economic surprises.


On the other hand, it’s certainly possible that the bond rally was driven by more QE, since QE is specifically a bond-buying program, and that also may explain why yields are starting to come up again, without a corrolary fall in equities.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at