With the FOMC stopping QE and stocks jittery, something had to be done. “Investors” weren’t buying the ECB rhetoric. Fear was starting to rise. Then came the central bank of Japan to the rescue. That seemed to do the trick — massive QE targeted at buying stocks. Apparently that was just what the doctor ordered to ignite stocks one more time into record-breaking mode.
Monday, stocks rose in Asia 0.5%. In Europe and the U.S. they fell 0.6% and 0.4% respectively on low volume. Tuesday, stocks rose in Asia 0.4%, in Europe 0.9%, and in the U.S. 1.3% on low volume. As mentioned last week, IBM should buy even more of their worthless stock.
Wednesday Asia up 1.1, Europe up slightly, U.S. down 0.3% on low moderate volume. Precious metals miners lost 4% and junior minors almost twice that. Thursday stocks fell slightly in Asia, rose 0.6% in Europe and the U.S. on low volume. The Dow Jones Industrial Average ramped higher to close far above the 17,000 level again. Precious metals took a beating — dropping over 3% and their miners about twice that and junior miners over 13%.
Friday, stocks in Asia rocketed 1.6% higher as the Bank of Japan decided to increase the rate of QE and stock purchases that they plan to perform. Stocks powered 1.8% higher in Europe and 1.2% in the U.S. on moderate volume. Precious metals continued their carnage — falling 2.6% while their miners slid about twice that amount. Finally, both the S&P 500 Index and the Dow Jones Industrial index closed at all-time highs.
For the week, stocks rose 2.8 percent while the VXO declined over 14%, precious metals tumbled 6%, and their miners crashed about three times that amount.