QE Infinity Returns

For the first time in its 228-year history, the NYSE is operating without its trading floor. All the trading today is electronic.

This morning, the Federal Reserve pledged to purchase unlimited assets in an effort to support the market.

The Federal Reserve said Monday it will launch a barrage of programs aimed at helping markets function more efficiently amid the coronavirus crisis.

Among the initiatives is a commitment to continue its asset purchasing program “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

That represents a potentially new chapter in the Fed’s “money printing” as it commits to keep expanding its balance sheet as necessary, rather than a commitment to a set amount.

The Fed also will be moving for the first time into corporate bonds, purchasing the investment-grade securities in primary and secondary markets and through exchange-traded funds. The move comes in a space that has seen considerable turmoil since the crisis has intensified and market liquidity has been sapped.

The move initially seemed to help the markets, but stock prices have since fallen back into the red.

Danaher (DHR) is up today after the FDA approved a quick-acting COVID-19 test. The current tests take several hours and have to be shipped off to a hospital, but Danaher’s takes 45 minutes and can be done right there.

Posted by on March 23rd, 2020 at 10:46 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.