29 October 2010

POMO Visual

  • You've all heard of POMO, the Federal Reserves Permanent Open Market Operations, recently.
  • Above is a great graphic which demonstrates the correlation between POMO days and stock market performance over the past two months.
  • Correlation or causation is the question?  Can't prove causation but...
  • It sure looks as if the government has bought themselves a stock market rally.
  • What do you think?
  • Artificial market.  How do you invest in what may turn out to be a mirage?
  • 'Nuff said....Good luck!

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