Well, the US stock market is raging along with Federal Reserve monetary stimulus, Federal government fiscal stimulus and a roaring economy.
A note of caution: the Hindenburg Omen chart is flashing … again. It forecast the stock market crash of 2008, but growing monetary stimulus from The Federal Reserve (green line) has helped prevent another correction.
The Shiller CAPE ratio is signalling a correction just like the Hindenburg Omen.
But Fed Chair Powell and Treasury Secretary Yellen along with our free-spending Congress and Administration have nothing on Europe where the ECB’s balance sheet is a whopping 79.51% of European Union GDP! The Fed’s balance sheet is “only” 36.66% of US GDP.
Here is the SS Powellenburg cruising over Wall Street.