Just as the QE tap gets closed by the Fed earlier this week, the Bank of Japan steps up to the plate with another JPY 10trn (around USD 130bn) of stimulus. Queue financial markets back to all-time highs:
My favourite quote on this, from Bloomberg:
“Markets don’t really seem to care about what kind of stimulus we get or where it’s coming from, as long we get something,” said Teis Knuthsen, chief investment officer at Saxo Bank A/S’s private-banking unit.
Once again, the dip-buyers win: even if you pulled out at the death cross, you were out of the market for all of about 1 week before you got back in (missing out on about 0.5% of appreciation along the way). Guess we just keep going until it stops working!