No, not Chairman Elmer Greenspan, Chairman MaoXian. He's posted a chart of the S&P 500 Index with the Federal Funds Target Rate Overlaid. There's a hell of a divergence in that chart right now. I wish I knew what to make of it though...
(And while you're there, check out the tiny car on Monday's post. What is that, a mini-Mini Cooper?)
updating to add: That little car is a smart, a product of DaimlerChrysler.
I archived that Federal Funds Chart entry here.
That little car is a smart, a product of daimler chrysler. They're cute but I don't think I could fit in one. Every time I see one I expect about 20 clowns to come pouring out of it... ;-)
Thanks Chris. That's definitely a circus car! Your description of a 'tuna can on wheels' is dead on. It's funny how the car companies sell those tiny cars over-seas, but rarely over here. I wonder if we'll ever get over our love for gigantic cars.
Looks like The S&P's divergence from the Fed Funds rate does not last long. This time is different?!
Actually, it is hard to draw any conclusion from this because unlike past easing cycles, the market has largely maintained a strong downward trend. Hard to imagine that when rates start creeping up that we will get a nice correlation for both going back up arm-in-arm.
Now I don't feel so bad. If you can't draw a conclusion from that, I surely shouldn't be able to. :-)
Ah - I am still grasshopper, Obi Won! lol...