QE-2 Quantitative Easing and the Market

Helicopter Ben Bernanke is adopting a new round of economic backstopping called "Quantitative Easing". He will sprinkle money around via Treasury bond open market purchases. This activity is the equivalent of printing money out of thin air.

While this is inflationary long-term, intermediate-term it bodes well for the stock market.

I have highlighted QE's effect on the market in the chart below.

(Click on chart to enlarge it for easier viewing)