Well here we are. Almost back to all-time highs on the markets.
As you can see in this chart from FinViz, it was just a couple weeks go that markets seemed to be correcting.
At the time in mid-June, the story was that Bernanke had turned a tad hawkish, and was ignoring the weak inflation data, and that the “taper” was happening, and that perhaps the first rate hike would come before people had been thinking.
And now suddenly the story has changed.
In Europe (both at the BoE and the ECB) there are more moves to ease policy.
Post-Bernanke, a series of Fed heads came out, and calmed markets a bit, making it clear that the taper did not signify that a rate hike would soon becoming.
And we got the strong jobs report last Friday, bolstering the idea that it’s OK if the Fed eases back just a tad.
Two weeks ago the talk was about “monetary austerity” finally coming after years of ultra-cheap money.
And now, from a conversation on Twitter:
@Jesse_Livermore Funny how narratives change. Two weeks ago the story was about the final chapter of this great easing cycle.
— Joseph Weisenthal (@TheStalwart) July 9, 2013
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