Last night we saw the US Federal Reserve announce $600 bn in additional stimulus plus renewing the current stimulus of between $250bn-$300bn.What does this mean for the markets? Well, cheap money is going to flow into stock markets and push prices higher looking for yield.
As you can see from the graph above, the JSE Allshare has made a turnaround from its last dip, and have continued it's rally upwards.
With the US dollar continuing to trade weaker, we can see commodity prices going upwards in anticipation when inflation kicks in. Thus it will be a boon for commodity related stocks.
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