This shows a comparison between the balance sheets of the top 3 central banks and the performance of the NASDAQ-100 index over the past 10 years.
It suggests that there is a close correlation between the increase in the balance sheets of these central banks and the rise of the NASDAQ-100 index during this period.
A central bank's balance sheet typically includes assets, such as government securities, foreign reserves, and loans, as well as liabilities, such as currency in circulation and deposits from commercial banks. The balance sheet of a central bank can expand or contract depending on its monetary policy actions, such as open market operations, quantitative easing, or tightening measures.
The NASDAQ-100 index is a stock market index that includes the performance of 100 non-financial companies listed on the NASDAQ stock exchange, which is known for its heavy weighting towards technology companies.
The correlation between the central banks' balance sheets and the performance of the NASDAQ-100 index could suggest that the monetary policies implemented by these central banks, which may include measures such as injecting liquidity into the financial system or lowering interest rates, have influenced the performance of the stock market, particularly the technology-heavy NASDAQ-100 index.
An increase in central banks' balance sheets may indicate an expansionary monetary policy stance, which could potentially provide liquidity and support to financial markets, including the NASDAQ-100 index, and contribute to its upward trend over the past 10 years.
It's important to note that correlation does not necessarily imply causation, and there could be other factors at play that are influencing the performance of the NASDAQ-100 index.
Additionally, the relationship between central banks' balance sheets and stock market performance can be complex and multifaceted, and it may vary depending on various economic and market conditions. Further analysis and context would be needed to fully understand the implications of the correlation between the central banks' balance sheets and the NASDAQ-100 index.