Quote:When using this methodology to measure the correlation between the Fed’s balance sheet and S&P 500 since quantitative easing began in January 2009, we get a correlation coefficient of 0.036.[i] What does that mean? Well, a correlation of 1.00 implies two variables move in lockstep, -1.00 implies they move in opposite directions always, and 0 implies no relationship.A correlation of 0.036 is about as close to zero as you can get.[ii] That means there is basically no relationship between changes in the Fed’s balance sheet and the S&P 500. Don’t like the weekly frequency? Even calculated monthly, the correlation is just 0.12—not statistically significant.[iii] No, the Fed’s Balance Sheet Doesn’t Explain Stocks’ Moves | MarketMinder | Fisher Investments
Quote:With no sign that the Chinese government is prepared to ease restrictions soon, concern is mounting about the economic damage they are causing, and the shock waves an extended lockdown will send around the world. Shanghai is the epicenter of the current Covid outbreak, but it's not alone — analysts at Nomura estimate that full or partial lockdowns are in place in 45 Chinese cities, affecting a quarter of the population and about 40% of the economy. Premier Li Keqiang warned on Monday for a third time in a week of the threat the upsurge in Covid posed to the Chinese economy. Here's three reasons why the rest of the world should be watching Shanghai closely, too.Why Shanghai's lockdown matters to the global economy - CNN