Pedal to the metal for growth and inflation

Hey There Income Hunters,

I pointed out last week that Federal Reserve Chairman Jerome “J-Pow” Powell is being very sneaky …

Reading between the lines, I sensed there was a reason he kept repeating that the Fed will continue to purchase “at least” $80 billion in US Treasury securities and $40 billion in mortgages each month.

Well check out the table below

Last week’s balance sheet report revealed that the Fed is WAY over the $120 billion total for March …

In fact, the current total for the month is $170.6 billion — and there are still three buying days left …

This intel adds to the bullish case for accelerating growth and inflation as we head into April.

Here is even more …

Since the Fed’s decision late last year to allow banks to buy back their own shares again …

Buybacks are accelerating and recently hit record levels. See below:

And just last week Treasury Secretary Janet Yellen gave her blessing to the Fed’s decision …

Why wouldn’t she check out the impact buybacks have had on the stock market rally since 2009 …

This chart shows who the cumulative net buyers have been in the stock market since 2009. Clearly it is hands down the non-financial corporations (red line) who execute the buybacks.

So, I see 3 bullish indicators for stocks as we head into April…

        1. The buybacks are back.
        2. The Fed is supercharging its quantitative easing (QE), which is spending on longer term securities (such as government bonds) to increase money supply and economic activity.
        3. Yellen continues to inject what remains of the $750 billion of excess borrowing proceeds from the Treasury account — PLUS she will add another $500 billion in Q2 …

I think early this week we may see quarter-end rebalancing out of stocks and into bonds …

That would be a great dip to buy.

I see the SPDR S&P 500 ETF Trust (Ticker: SPY) going to 404 in April. Other than one false breakdown, SPY has been in a nice upchannel.

And after holding the bottom of the channel, I think SPY will head to the top, which would take it to 404-405 … 

Bring it Home,

Let’s go #IncomeHunters … This week will be a launching pad into a dynamite Q2!

Stay focused on the sectors that will benefit from the accelerating growth and Inflation:

        • Financials
        • Industrials
        • Materials
        • Energy
        • Commodities

I hope you all crush it this week

As always …

Live and Trade with Passion My Friends,

Griff

 

 

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