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.

chart

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.

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