Quote:
Originally Posted by Chi-Town
How long can one keep saying the Fed or quantatative easing like it's a magic wand? In actuality it is earnings that drive the market. This is from Morgan Stanley Smith Barney.
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I agree that, basically, it's earnings that drives the market. But I would just like to add that low interest rates, among other restructuring measures, helps to increase earnings. Many companies have restructured their debt and are now paying a lot less interest.
Of course some will complain that interest rates are "artificially low", but there's nothing artificial about better earnings.