8028223474?profile=originalKarim Taleb, Managing Partner of Robust Methods, kindly provided this whitepaper on the Federal Reserve and money creation, and its effects on the S&P 500.

Download the whitepaper here.

“The effects of the Federal Reserve’s on-going policy of artificial money creation are well documented by now… Given that price levels reflect a relative abundance or scarcity of a certain supply against a certain demand, an increase in the supply of money against a fixed amount of shares in the equity indexes naturally increases the price of the index, and with all other variables remaining equal. Clearly, the bulk of the upwards variation is a direct result of the debasement of money, and even more so that the economic picture has not improved to most, except for the direct beneficiaries of the scheme.”

The whitepaper goes on to looks at:

  • S&P 500 performance during Fed Open Market Committee action
  • Effect of FOMC meetings on the S&P 500
  • Risk effect of FOMC meetings

Get your copy of the whitepaper now.

Karim will be speaking at the upcoming Trading Show Chicago in June, on the topic, ‘Are mid-sized rogue algos really the bad guys? Fairness in HFT and the markets.’ He will also be participating in a panel session on ‘The future of the capital markets industry – lessons learned and how to move forward.’

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