Machine Learning

The most obvious explanation is that investors around the world, who will eventually be the buyers of the S&P 500, are being suppressed by the monetary authorities in their home countries The European Central Bank (ECB) is purchasing Italian and Spanish government bonds in their secondary markets The Bank of Japan is conducting an unprecedented money printing program The U S Federal Reserve is buying $85 billion in mortgage bonds each month The Bank of England is buying gilts The Bank of China is buying "blue chips" on the Shanghai exchange The list goes on The collective net purchases of these central banks is near $4 trillion annually The net purchases of the central banks of the 30 countries in the MSCI All-Country World Index is $1 7 trillion annually So, even though the S&P 500 is up $8 trillion since the bottom in March 2009, investors around the world have added $8 trillion to their equity positions since the bottom in March 2009 The central banks are responsible for a good porti