We all try to analyze news and anticipate market action. We pour over balance sheets and try extrapolate the future. We look at indicators of all types and try to determine future market prices. In today’s market is is all just a reason to spin our wheels. In other words, all these machinations are total bullshit.
There is only one thing that determines the near-to-intermediate term market action; easy money and liquidity.
Do you wonder why the dip is bought? Look no further than ZIRP. Wonder why there is no pullback while QE I, II, etc. is underway? Why do you think indicators based on technicals or sentiment stretches to historic levels?
All of the comments of a government controlled market, of how the Fed Chairman lies to perpetuate his ends, and the conspiracy theories are all true. Buy until the money ceases to freely flow. I know that it seems awfully simplistic and that doesn’t mean to be stupid about chasing . But it is the 100% gospel and honest truth. Almost nothing, and I mean short of a nuclear war, really matters. This is what the entire Wall Street and Banking complex lives and dies by. Everything else is just noise.
That is all. Have a great weekend!
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Spo’ on, mate 🙂
Does this mean you’ve ungirded your loins?
I was wondering the same thing. Scott?
QE 2 does not end until summer. You are changing your stance until then?
Changing my stance? No way, JOSE. This is just a simple, explanatory piece for the extremes we’ve reached…