Posted 4/13/2024, 1:37:37 AM
Stocks Rally on Treasury Income, Global Spending, Real Estate Peak Despite Average Fiscal Flows
- Four factors driving the stock market rally despite average fiscal flows treasury interest income, global fiscal spending, peak of real estate cycle, interest on reserve balances at the Fed
- Treasury interest income flowing to wealthy recipients who then invest in stocks
- Global fiscal spending (G5 flows) providing an underlying uplift to markets
- Wealth effect from real estate boom causing more money to flow into stocks
- Interest paid to banks on reserve balances also flowing into stocks and bonds