The Three Legs of the Q4 Melt-up

1)  Under allocated investors

2)  Expectation of a Republican victory in the  November election…

3)  The Flood of Liquidity unleashed by ultra-loose global monetary policy…

“The Bank of Japan will encourage the uncollateralized overnight call rate to remain at around 0 to 0.1 percent…As assets to be purchased, the Bank will examine long-term government bonds, treasury discount bills, commercial paper (CP), asset-backed CP (ABCP), corporate bonds, exchange-traded funds (ETFs), and Japan real estate investment trusts (J-REITs).” –  Bank of Japan Statement on Monetary Policy

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