Market Savior? Stocks Might Be 50% Lower Without Fed

By John Melloy

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.

Theoretically, the S&P 500 (^GSPC) would be more than 50 percent lower-at the 600 level-if the bullish price action preceding Fed announcements was excluded, the study showed.

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Federal Reserve Bank of New York (11 July )