Sunday, July 15, 2012

FOMC Announcements & the S&P 500

The NY Fed just issued a report (HERE) telling that markets tend to run up before FOMC announcements. And if one were to back out the hype cycle around these, markets might be as much as 50% lower, and:
... more than 80 percent of the annual equity premium has been earned over the twenty-four hours preceding scheduled FOMC announcements, which occur only eight times per year.
Fine. And while we are just learning about the Lie-More-Libor-Scandal, these so called FOMC announcements remain one of these inexhaustible bonanzas so dear to the global banking-cartel.