So Easy Even A Caveman Could Do It…

It’s been three years almost to the week since the bottom of the market at Dow 6500. The market has exactly doubled since then.

First, the accounting rules were changed. Then the Fed became the buyer of last resort for all kinds of bad paper. Then they came out and printed trillions to pump into assets to combat the deflation that was sure to follow a major market price break and economic freeze. And here we are, up 100% in exactly three years.

There is no coincidence that the markets rally during times of overt money printing and QE from anywhere in the world, now well into our fourth worldwide round. It is no coincidence that there are no dips during any of these liquidity-fueled rallies. But now that we have doubled in price, the “greats of investing” are telling you why we are here: because interest rates are so low! Never mind that the greatest manipulation carried out by the “guardians of the currency” will create any amount of money to buy bonds and drive rates lower so governments around the world can continue to spend profligately and with great vigor.

By forcing down rates, everyone knows that stocks–in comparison–look good relative to bonds. Bernanke says, “jump” and the market say “how high”? It is really that simple. With the British, Japanese and the Europeans printing cash, all that’s left is for us to begin QE3 and the Chinese to throw some cash around. That will be soon, sometime after the April 15 selloff that will occur after you plow money into your 401k/IRA’s near multi-year highs.

But in the meantime, the equity and commodity markets are acting similarly to 2008; a rising market in the face of the bad news that is “fully discounted” and money pouring into the safest commodity of all, oil. It is not Iran causing prices to rise and it is not Greece that markets will be truly afraid of. These are Red Herrings. It is protecting investors, banks and goverments at any and all costs until either the economy self-starts or blows up. Let’s enjoy the sickly low volume, ever levitating market while we can.

And don’t forget to RAISE YOUR STOPS TO PROTECT YOUR HARD-WON PROFITS!