This week, Apple made global headlines after its market value surpassed $700 billion, which made the iPhone maker the richest company in the world, even wealthier than Berkshire Hathaway, Exxon Mobil and Wal-Mart.
As soon as the company’s stock kept soaring, financial experts pondered if its market cap could actually reach $1 trillion in the stock market. Although most concur that it’s still years away, we can definitely surmise on one thing: this surge is thanks to the good folks at the Federal Reserve.
The United States central bank has fueled much of the so-called growth in the stock market through its money printing ways, record-low interest rates and stimulus, otherwise known as quantitative easing.
With $4 trillion of freshly printed money, it’s no wonder that Apple, which has no doubt created products that consumers want, would become the wealthiest private company in the world today. Is it possible that Apple CEO Tim Cook sent a love letter to former Fed Chair Ben Bernanke and incumbent Fed Chair Janet Yellen this Valentine’s Day?
It’s astounding how much money pumping can greatly enhance the value of a stock.
Look at the chart (via Federal Reserve Economic Data) below and it’ll surely highlight how much money printing has occurred in the last few years.
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