Tuesday, March 31, 2020

Endless Monetary Easing

Endless Monetary Easing

The US Federal Reserve has added $1.3 trillion USD on to its balance sheet in the past week - eclipsing the all time highs.

2020-03-25: $5,254,278 (millions)
Updated: Mar 26, 2020

Source: https://fred.stlouisfed.org/series/WALCL

Makes me go hmmm... what happens when currencies are being printed at astounding rates? It's not just the US, it's worldwide as we battle the global coronavirus pandemic.

What does this mean for hard assets? Precious metals, energy, real estate, bond prices? Likely in the short term - it's anyone's guess with the volatility, and actually likely down as the need to sell everything to deleverage hits in waves.

Today was the last day for month end portfolio balancing which saw a huge amount of buying demand in the past few days (moving from bonds to stocks) for those funds that have a ratio of bonds:stocks to be held.

Tomorrow is a new month - and we'll have to see what this market bounce goes (or flops) as this buying dries up.

#Gold #Silver #Energy