What You Need To Know About Low Rates & High Stock Prices
Do low rates lead to higher stock prices? The logic goes: low rates give us higher present values and thus lead to higher equity values. Is this argument valid?
Do low rates lead to higher stock prices? The logic goes: low rates give us higher present values and thus lead to higher equity values. Is this argument valid?
While bank reserves have nothing to do with crypto’s meteoric rise, QE actually has played some role in it. Except, it just isn’t what everyone thinks it is.
QE is a popular reason cited for the rise in cryptocurrencies, linking the rise in bank reserves with high crypto prices. How true is the QE-Crypto narrative?
Gold prices have soared along with massive increases in bank reserves. The idea being that the Fed’s QE has led to the debasement of the USD. How true is this?
People have looked at the correlation between stock prices and bank reserves and concluded that Fed QE is the reason for soaring equities. This just isn’t true.