All the silly people who thought I couldn’t do it can just step off. It took two years, but I’m back to levels I haven’t seen since 2008. With the election out of the way, I was all about the man Ben Bernanke, who practically gave me whiplash with the Federal Reserve’s announcement of $600 billion in purchases of long-term Treasuries to help prop up the economy.
Check out what I did at midafternoon, when the Fed news came out:
The Fed plans on throwing about $75 billion in liquidity at the market per month, and plans to update its approach as circumstances change. Every member of the Federal Open Market Committee voted for the so-called quantitative easing, except for one guy:
Voting against the policy was Thomas M. Hoenig. Mr. Hoenig believed the risks of additional securities purchases outweighed the benefits. Mr. Hoenig also was concerned that this continued high level of monetary accommodation increased the risks of future financial imbalances and, over time, would cause an increase in long-term inflation expectations that could destabilize the economy.
This Hoenig guy really chaps my cheeks. With economic growth practically nonexistent, I need this monetization. Hoenig, c’mon man! Join the party!
Doesn’t matter much. I gained 26 points and reached a two-year high on the news. Back where I was in 2008, when the financial world was ending. That shouldn’t be comforting, but it is. We live in weird times, and I’m just glad to register another win.
See you tomorrow,
The Dow Jones Industrial Average