During QE1 and QE2 the S&P 500 gained about 30%. The biggest winners were found in basic materials. Incidentally, since the Fed stopped QE, basic materials have materially underperformed the market. Once high fliers like CLF, X and JOY now suffer under heavy anvils tossed by weaker than expected Chinese economic data. However, things are about to change, rather dramatically, should The Bearded Clam implement POMO tomorrow.
First off, you need to understand there isn’t a rush to buy now. If QE3 is a go, stocks will coast higher for a period no less than 6 months. It’s foolhardy to jump in ahead of potentially catastrophic news.
So, instead of worrying about QE or not to QE, I’ve been busy exploring the possibility that our moon, mind you, is in fact an alien space-station, designed to spy on us earthlings 24 hours per day.
Below is part of a screen I put together inside of the hallowed halls of The PPT. There you will find the biggest pieces of shit basic materials have to offer. Consequently, under QE3, that shit, mind you, will be turned into 24 karat gold!!!