Returns - R-squared of Fed Balance Sheet YoY vs. YoY Change in S&P 500 Market Capitalization that is not Driven by Earnings
Since 2010, the Fed balance sheet expansion tends to explain 52% of S&P 500 returns.
Image: BofA US Equity & Quant Strategy
Since 2010, the Fed balance sheet expansion tends to explain 52% of S&P 500 returns.
Image: BofA US Equity & Quant Strategy