Who is the moron who has decided that there should be a renewed allocation into the ex-leadership technology stocks?
Apple, Google, Priceline, Amazon. And after that a plethora of smaller, speculative names are reaching for the sky. Plus, every economically sensitive Transportation stock is up big today.
With the market indices blasting over their intermediate term resistance and the top of the trading range and yearly highs in sight, markets are doing their best to give you the impression that everything is now fixed and OK. In fact, market participants (HFT or otherwise) are telling you that the “All Clear” is being given now.
The risk is that on Thursday, Dr. Bernanke says the same shit and then really weak economic numbers present themselves. But it has been proven over and over again that the weaker the economy and the more fraught with danger that the financial system is faced with, the higher the market will go.
The Central Bank Training Facility has promised nothing short of unlimited liquidity and the markets care only about that. In fact the money the FED pumps serves to boost asset prices at the expense of any and everything else. The Capital will never “leak” into the real economy otherwise we will be faced with the hyper-inflation that many Old Timers fret about.
So there is ZERO RISK in unlimited capital creation so long as it stays locked in the closed loop of the banking/investment world. At this pace, new all time highs will be around the corner, just as soon as GDP turns negative for 2 quarters in a row.
Hopa!
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Sooooo…..As long as the market is fucked, we can expect slow methodical melt ups in Stocks and Commodities.
Absolutely, without a shadow of a doubt. Until Bernanke or Geither have been replaced or killed.
Can I include Yellen too in the replaced or killed group.( I wonder if Yellen is the Drag Version of Bernanke?). Her June 6 speech leans more to a possiblity of extention of the twist, but OMG NFP numbers have such huge revisions to them that IMHO they really should give it a month or two to see what numbers they are really dealing with before they try and “save” us. It really was sort of sick watching AAPL trade up today..LTRO, QE, Twist, etc..just making one huge ugly mess when it finally has to stop.
Why does Scott get so salty over higher equity prices?
Should we all invest in 10 yr govt bonds instead of this “rigged” stock market?
“Salty?” That’s a good one…
Scott, I actually agree with the vast majority of what you write. But how else am I supposed to save and grow money? Solid co’s like MCD are far more attractive to me than 10 year bonds. Interest rates are non existent… etc…