The 'Buy Everything' Trade Boosts Stocks and Everything Else
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Stocks and commodities are en fuego today as the 'Buy Everything' camp has been given vigor after quantitative easing in Japan and dovish comments from another Fed head.
Today the Japanese central bank lowered the benchmark interest rate to a range of 0.1%-0.0% from the prior rage of 0.1%. They also announced new quantitative easing measures which will include the purchase of up to 5 trillion yen ($60 billion) of Japanese government bonds, commercial paper and other asset-backed securities, including exchange-traded funds (ETFs), and Japan real estate investment trusts (J-REITs). The potential move to buy equities (ETFs and REITS), raised eyebrows on Wall Street.
Also adding fuel to the fire was comments from Chicago Federal Reserve President Charles Evans that he favors "much more" fed easing. These comments echoed the view of New York Fed Chief William Dudley, who last week said further Fed action is warranted. Today's comments from Mr. Evans are significant as his views are considered the "broad center of gravity at the central bank," the Wall Street Journal noted.
The Dow is up 206 points, or 1.9%, the Nasdaq is up 57 and the S&P 500 is up 25.
While stocks are higher, gold is performing even better - rising over $25, or 2%. Gold is seen as the most effective way to gauge and protect against central bank currency manipulation around the globe.
Other commodities are also rising on the quantitative easing measures. Oil rose 1.5%, Silver rose 4% and cooper rose 1.7%, among others.
Today the Japanese central bank lowered the benchmark interest rate to a range of 0.1%-0.0% from the prior rage of 0.1%. They also announced new quantitative easing measures which will include the purchase of up to 5 trillion yen ($60 billion) of Japanese government bonds, commercial paper and other asset-backed securities, including exchange-traded funds (ETFs), and Japan real estate investment trusts (J-REITs). The potential move to buy equities (ETFs and REITS), raised eyebrows on Wall Street.
Also adding fuel to the fire was comments from Chicago Federal Reserve President Charles Evans that he favors "much more" fed easing. These comments echoed the view of New York Fed Chief William Dudley, who last week said further Fed action is warranted. Today's comments from Mr. Evans are significant as his views are considered the "broad center of gravity at the central bank," the Wall Street Journal noted.
The Dow is up 206 points, or 1.9%, the Nasdaq is up 57 and the S&P 500 is up 25.
While stocks are higher, gold is performing even better - rising over $25, or 2%. Gold is seen as the most effective way to gauge and protect against central bank currency manipulation around the globe.
Other commodities are also rising on the quantitative easing measures. Oil rose 1.5%, Silver rose 4% and cooper rose 1.7%, among others.
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