I try to avoid politicizing economic issues any more than is absolutely necessary, but it's hard to ignore US Fed / Treasury actions over the past month that approach the trillion dollar ballpark in total ...
The 'creator' of this graph is obviously of the opinion that the political 'powers that be' have 'instructed' the US Fed / Treasury to print billions in new greenbacks over the past month and to 'distribute' that newly created money to member banks such that most of it would wind up being used to purchase US stocks - thus causing US stock indexes to rise just prior to the election. The future implication is of course that if the political 'powers that be' don't wind up doing well in the election, that they will still be in a position to 'instruct' the US Fed / Treasury to reverse policy i.e. suck money out of the US stock markets in november and december.
In fact, some of the 'talking heads' on the cable financial channels (Bloomberg, Fox) are beginning to discuss the possibility this weekend that if Democrats win majorities in the upcoming Nov 7 election, the implied tax increases that go along with Democratic majorities will result in a major sell-off of US stock markets.
Whether implied tax increases by a new majority of Democrats are in fact the cause, or whether a reversal in US Fed / Treasury policy in november and december under 'lame duck' conditions in the US congress are the cause, either way tends to indicate that US stock markets will be headed downward from here if Democrats do well in the upcoming election !!!
My only objective in posting this is to raise awareness on the part of anybody who is heavily invested in US stocks right now that they may want to re-evaluate their position in light of this very significant new risk factor.
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