Most Important Item of the Day

Happy Monday Everyone,

I want to highlight items briefly during the week that I think are extremely important. The goal is to be short and concise and focus on importance. Below is a perfect example. The chart below depicts the purchase schedule via QE for all the Central Banks combined. This is the only form of money velocity in the system today as a result of the economic closures resulting from Covid. Additionally it has been proven that markets follow the Flow, or change, in purchases, not the amount of purchases themselves, meaning increasing purchase amounts drive stocks up, decreasing purchase amounts drive stocks down. You can see below that we are on course for a tumultuous and difficult 2020 and 2021 unless Central Banks come to the markets rescue with even more stimulus. If they don't, expect a lot of sideways movement, and volatility. Hedge, and diversify. Thanks,