Did you listen to Saint Ben yesterday? BTW–he should shave his head, a la Jeff Macke. He would gain immeasurable respect.
There is no longer any doubt that his legacy is one of blatant market manipulation as investors are “forced” towards risk.
One Trillion Dollars a year is his promise and that is exactly our government’s spending deficit. And that is what will be eventually sucked out of markets in the massive desire for the liquidity needed to “pay the bills”.
This money is the lifeblood of markets and will keep stasis. My only concern is if the market begins to drop and the “free money” doesn’t stop the fall. What happens then? More billions per month?
Worldwide economic contraction continues, yet markets care not. Economic theory has been trashed in this Costanza world. Yet we must march on and identify winning strategies.
Either trade momentum and sell early and often, or buy beaten down stocks that will eventually find sponsorship. But be careful with the favorite stocks because they will be over-loved and subject to severe damage once everyone is in, a la Apple.
Fear not this time of the year, until after Inauguration Day, then En Guarde!