I honestly did not expect Bernanke to initiate QE this close to a presidential election. While some of you seem to feel that this will aid Obama, I humbly disagree.
Bernanke will likely infuriate most voters as gasoline and oil ramp into November 6. That is the last thing I think Obama would like, and Romney can now run with the Ron Paul crowd, playing up Ben as a political lackey willing to sacrifice his countrymen’s wellbeing to keep the pig trough full.
Romney would be a fool not to tap into the general hatred and mistrust of bankers, to his advantage.
More to the point, I have this 25% cash position precisely because part of me thought Ben would not initiate monetary easing. Now that he has, let me be very frank – we are not selling off before next January.
What you are seeing today is a sector rotation and nothing more. Rotation and people locking in monster one day gains.
We are not done going higher.
For those distinguished gentlemen of The PPT, I advise you to just stop looking at the market gauge, because it’s going to be flagging in the red, superheating cycle, for a long, long time.