Your Fed at a Glance
- November 2008: $600 billion QE plan
- March 2009: $750 billion QE plan
- Note: After QE1 ended in March 2010, the S&P 500 was higher by 73% or so vs. March 2009.
- November 2010: $600 billion QE plan
- Note: From November 2010 to June 2011, the S&P 500 rose 11%.
- Operation Twist 1: September 2011
- Operation Twist 2: June 2012
- Boost to stock prices immediately, and then over a longer period
- Eventually set the stage for the housing market's 2012 recovery
- Companies are issuing new debt at attractive rates, buying back stock, increasing dividends and improving their capital structure by refinancing.
- The Fed has shown investors globally the full range of tools at its disposal. Pre-Bernanke, not many had been aware these abilities existed. (You didn't, so stop.)