Very useful chart for when you need to establish that commodities and the stock market aren't simply up because the dollar is down.
The Path Of Every Major Asset Class Since The Fed Started Stimulating In November 2008
Courtesy of Sam Ro, Business Insider
Directly or indirectly, the Federal Reserve's extraordinary efforts to stimulate the economy has contributed to the performance of the U.S. financial markets since the financial crisis.
"Since the Fed began its non-conventional monetary policy in late November 2008, US assets prices have been strongly inflated, including cyclical ones such as Equities and Commodities, even despite poor economic growth," wrote Societe Generale's Alan Bokobza.
Bokobza offers the chart below of various U.S. asset class returns since November 2008.
What are his expectations should the Fed start to taper, or scale back, its bond-buying program.
- "Fixed Income assets will obviously suffer"
- "The US Dollar should benefit"
- "Equities and Commodities will not likely escape a short-term correction"
- "Volatility should increase on all asset classes"
Societe Generale
