Monday, December 12, 2011

S&P 500 Correlation with the Monetary Base

Below is a different visual representation of the previous post.  It shows the change in the S&P 500 against the change in the monetary base over the last 3 years.  The correlation of the of the two has been uncanny.  Periods of rally and consolidation on the S&P 500 have coincided closely with periods of QE on and QE off.

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