Your Daily Bit of Wall Street Wit & Wisdom

money sheet

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“Earnings, dividends, book value… none of these really matter for moving the overall stock market. The only 2 fundamentals that matter are:
1. How much money is there?
2. How much does that money want to be invested?
Change either of those, and you move prices.”
— Tom McClellan, @McClellanOsc

Follow the money, the big money, the sovereign money.

Central bank monetary largesse provides liquidity that juices markets.

In the latest reporting period, there was a central bank balance sheet contraction.

That’s a clue.

Best regards,

Steve

 

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