Did The Global Pivot Back To QE Just Begin?

The Bank of England has officially capitulated and started QE again. Will the Fed follow? If so or if not, what does it mean for equities?

Over the last two months, anytime I’ve written an article about names that I liked or the idea of stocks moving higher, I have always tried to qualify it by saying it’s reliant on whether or not Central Banks hold course. I’ve argued if they do hold course - and really now regardless of what the Fed does, with rates being rushed to 3% in 10 months - something was/is going to break and capitulation was/is on its way.

The Fed has been adamant in holding course so far, and that has led me to prepare actual drafts such as the one I put on hold in favor of writing this piece today.

But on Wednesday morning, the global economic landscape shifted enough that it was worth noting - and it’ll set off a series of events that’ll offer opportunities in several names and asset classes that I have already been buying and plan on buying more of (aside from just blanket “risk”). It also introduces some new game theory into what the Fed’s path may be going forward.

In this piece I talk about:

• What happened Wednesday with the BoE

• What I think this will enable the Fed to do, when and why

• What is coming for equity markets in either direction

• What assets I think look attractive

Let’s discuss.