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Response to Calculating (Original post)

Wed Sep 2, 2020, 05:13 PM

13. Fed Money

Fed is buying low yield corporate bonds.
This provides expansion capital and reduces or eliminates short term line of credit borrowing for cash flow stabilization.
They maintain their cash on hand position, leaves their external investment portfolio, lowers debt service by using bond money to pay down higher priced debt, while provided expansion dollars.
Analysts love all those elements, so they bet the future.
This does suggest that since the market has been propped up with a couple trillion dollars, the indexes are now overvalued.

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