Given his reiteration last week that the Fed is here to stay – and his fellow dovish lapdogs’ confirmation that we can all rest assured that our ‘wealth’ is being protected – we know that the Fed balance sheet will hit around $4 trillion by year-end. Given the hyper-correlation over the past three months between US equity performance and the daily pump of POMO, it appears clear that Bernanke’s target for the S&P 500 by year-end is around 2000 (unless of course you think there is even a little bit of market efficiency and discounting left in the world).
Is this what the Princeton Professor is looking for?
Or did the market front-run as usual and has already priced it in?
and maybe the post 2010 valuation highs for the Dow will slow things down a little?
[VIA Zero Hedge]