This Chart Proves the Federal Reserve Goosed the Markets

Do we live in a free market economy? Hardly.

The chart below is the striking evidence you’ll ever need to see how much impact the Federal Reserve has on the S&P 500 (NYSE:SPY). (Click for Larger Image)

Click for Larger Image

In fact, this chart serves as a playbook should you live long enough to see history repeat itself.

If you look closely, you can also see when Fed Chairman Ben Bernanke signaled Quantitative Easing to the markets during his Jackson Hole speech on August 27, 2010. Note how the stock market rose like Hugh Hefner on a bottle of viagra.

So long as the Fed maintains zero interest rate policy and quantitative easing, don’t get too excited about shorting stocks or Commodities (NYSE:DBC) unless you like trying to count money over an industrial paper shredder during a tornado. And don’t waste too much time hating on Gold (NYSE:GLD) or Silver (NYSE:SLV) unless you want to look like the morons who have been bearish on Gold since it was $900 an ounce.

If you’re interested in adding insult to injury, check out how the Federal Budget Deficit is bipolar and schizophrenic.

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