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It will be interesting to see if the Fed starts directly buying stocks. If they do, my guess is that they will do it via the S&P 500 index.

But even without direct stock purchases, stimulus and money printing have the same effect; it just makes other parties do the buying. This pattern has been observed for years; when the Fed grows their balance sheet, the S&P 500 index goes up. These have a very strong correlation since 2009, actually.

I don't quite understand the mechanics, but I believe that the Fed QE (balance sheet expansion) provides monetary stimulus that circulates within large financial institutions. It prints money into the institutional/banking system, but not into the broad market or economy.

Once the new money is inside that institutional system, it "finds a home" in various places, including corporate bonds and the stock index. This is also really good for pension plans. Consider the catastrophic position of pensions (which could result in municipalities and even US states going bankrupt) the Federal Reserve is likely pretty happy about inflating the stock market, and helping pensions, solvency of states, and directly helping retirees along the way.

This is what I suspect has been happening for 10 years, and I think it's going to continue. The Federal Reserve has been inflating stocks without sparking broader (dangerous) inflation. So far, it's only been "asset price inflation" which has been purely beneficial.
 

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Did you buy when it was under 20 in late March/early April?
Yes, I started to buy at the end of February. I wish I had found out the Fear and Greed index earlier that I could wait further to buy ETFs. I found it from one of the Facebook groups in the middle of March.
 

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Yes, I started to buy at the end of February. I wish I had found out the Fear and Greed index earlier that I could wait further to buy ETFs. I found it from one of the Facebook groups in the middle of March.
If the question is fear, just look at the VIX and it gives a pretty good indication of anxiety and fear of market participants.
 
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