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…
- The buybacks are back.
- 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.
- 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:
I hope you all crush it this week
As always …
Live and Trade with Passion My Friends,