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!!!
29 Responses to The Crackhead Handbook to QE3
In 1981 — just 31 years ago — the Dow Jones Industrial Average was at 1,000. It is now at 13,131.
That’s a 1,213% gain. And all of that occurred between 1981 and 2000.
You also saw a 1,000% gain from 1943 to 1964 and from 1921 to 1930.
A 1,000% gain from now would put you at 131,310.
Call it crazy, but it’s historically accurate…
some of the most significant advances in tech have occurred w/in this time frame you speak of.
That would mean something had we not suffered the massive devaluation of buying power known as inflation along with it.
Seems like a pound of sugar was sold for like $.04 in the 30′s if I recall the ads archived in our family’s grocery store. Do the math on that % to todays price……
There is no way in Hell they will do QE3 tomorrow…zero zip
If they do expect gas to $4.50 a gallon and BO to lose big time.
If The Clam will have to deal with the Debt Crisis and pending automatic austerity cuts come Spring of 2013, wouldn’t he want to get a jump on it now while slapping the Mitten in the face with some hot pizza while he can?
I see MCP is up near the top. Other REEs align with MCP on sector sentiment (LYSCF comes to mind since their plant was recently completed, just missing a pesky license).
I must say, last nights scan was pretty sweet! I can only assume WoodShedder was involved in that one?
Anyways thnks for sharing it.
That ANR. It’s average volatility is about 8% for the month, without any of the 2x and 3x ETF margin requirements that enfeebled the FAZ dealers. It’s the new Blue Magic.
Everyone knows the game plan and its odds of success are 100% Right?
What the fuck does that mean? Stop speaking in code, you buffoon.
You’ve been making tongue in cheek comments for months.
Just say what you think will happen, tell us what you’re doing, make a prediction, attempt to add some value, or just shut up.
A lot of action today…over at The V.Kingdom that is…
are you going to avoid the coal plays in QE?
Yes. Fuck coal
Ben’s language will be easy/accommodative .. it’s a national holiday weekend .. he’s all for temporary wealth effects from stock rallies that will encourage mr consumer to spend spend spend, boosting the economy, temporarily at least
Jon Hilsenrath already gave us the Clam’s Headline, the Fed is going to Consider Bond Buying..and what happened, we sold off into the close. Sweet.
Very Hooverish of the clam to have a strapping young man as a mouthpeice.(absolutely homo)
Herbert or J. Edgar?
Cascadian..Has to be J Edgar, Herbert was straight..
I’ll gladly continue to lose money in TITN if it would just get a little less boring in the process.
Global growth is dead. Wouldn’t a china stimulis be the trigger for this trade. LTRO did nothing for basic materials. Hard to see any clam QE with gasoline where it is and even less of china QE due to food prices.
Eurotrash QE may do it. The conventional wisdom being the emergings sell more to them than us. Which would lead to a rebound in slave labour sales. Buy EWZ?
I know that bitch MCP well.
Fly do you regret going 50 to 35 % cash
Angela Merkel is in China. Look for China to help out the Euro’s in exchange for greater access to their consumer markets.
How? It seems plausible until the price of beans enters the equation. What exactly can China do?
Well, they can eat more rice and they would still love it! Just think, if each commie eats 25% more rice, what that will do to rice stocks! Maybe the PPT can recommend some rice companies?
There are no rice stocks. Seriously they do not exist.
I’m telling ya’all, come on over to my house: http://m.facebook.com/?_rdr#!/lisa.wells.3304673?__user=100004237268097
Where do you get your 321 crack data? Seems as though Bloomberg stopped giving it out for free.