As I wrote at the beginning of The Fed’s quantitative easing (QE) ventures back in 2008, The Fed will never be able to “normalize” monetary policy. As we have seen, The Fed has all but quit rate hikes and has annoucned end an to QT (quanitative tightening) in the Fall.
In celebration of the eternal Central Bank monetary stimulus, S&P500 volality (VIX) is collapsing … again as VIX Futures open interest is shrinking. Accordingly, the SMART Money Flow Index is rallying as investors see Central Bank surrender.
The global Central Bank asset purchase bonanza!!
Coupled with low rates.
The Fed and other Central Banks are contuning to run their bubble machines!