[Infowarrior] - OT: No, the markets aren't rigged.

[Richard Forno]

Market Savior? Stocks Might Be 50% Lower Without Fed

http://www.cnbc.com/id/48165921

A report from the Federal Reserve Bank of New York suggests that the bulk of equity returns for more than a decade are due to actions by the US central bank.

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For example, the market has a tendency to rise in the 24-hour period before the release of the Fed’s statement on interest rates and the economy, presumably on expectations Chairman Ben Bernanke and his predecessor, Alan Greenspan, would discuss or implement a stimulus measure to lift asset prices.

The FOMC has released eight announcements a year at 2:15 ET since 1994. The study took the gains in the S&P 500 from 2 pm the day before the announcement to 2 pm the day of the statement and subtracted that market move from the S&P 500’s total return over that time span.

Without the gains in anticipation of a positive Fed action, the S&P 500 would stand at just 600 today, rather than above 1300.

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http://www.cnbc.com/id/48165921


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Just because i'm near the punchbowl doesn't mean I'm also drinking from it.