Added: 9 months ago
From: Finance101EC
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  • Nowadays, the DJIA is determined not so much on earnings anymore. The DJIA responds drastically to Ben Bernanke, Chairman of the Federal Reserve. If Ben Bernanke announces that the Federal Reserve will launch Quantitative Easing 3 (QE3), the DJIA, as well as many other stocks and commodities, will go up significantly in value at least until the stimulus comes to an end. Historically, the stock market goes up in response to Quantitative Easing. It happened when Quantitative Easing 2 occurred.

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