So, imagine this: The Europeans are contemplating buying all the short-term paper from all the European countries, or something similar.
The WSJ has “speculated” that assorted Fed-Heads are contemplating an open-ended QE that continues in perpetuity or until the economy posts solid growth again.
Asian markets began to respond to the obvious worldwide economic slowdown with lower prices until the “hope” of more stimulus came to the rescue and sent markets higher.
Most companies have warned of a slowdown through next year yet the new trillion dollar triumvirate is in charge (AAPL, GOOG, AMZN) and holding up the market.
Everyone is bearish because of economics but in reality everyone is bullish because the American market is at three year highs. Everyone is participating in the market because they “just follow price” and will be able to liquidate at the drop of a hat.
Central banks want to pump inflation at all costs. Soon the supply of materials will be overwhelming yet prices of everything needed will be at record highs. I just cannot imagine the deflationary forces at work that must be counteracted!
It is the beginning of the Democratic convention, and unlike the “full of shit” Republicans, we will enjoy some “delusional” presentations to remind us that “Obama is the Magic President that has made the stock market double”over these last few years.
Are market prices real? Are they sustainable or are they just a mechanism for Policy that allows the government to fund its deficit spending? Is there a real danger of prices falling out of bed or is the market “fully controlled”?
My belief, taking fundamentals, technicals & sentiment into account lead me to conclude that there is very high risk in markets. How or when I cannot say. But a quick thousand points just before or just after the election is not out of the question.
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Question is which direction
Scott, are you long, short, neutral, or sidelined?
I own intermediate/long term stuff like VZ since $30. I’ve bought other stuff, like the Euro stocks mentioned in May. Most are Old Man stocks. Trading small long & short…
Thanks.
I don’t like some of azn’s decisions, but probably a good pick of yours anyway, beaten down euro name.
Thanks, Scott. Noticed article in the Telegraph (UK) today in which Jim Rogers said the Fed has already began QE3. This w/b consistent with the market behavior we have seen. Wonder if the central banks have off-balance sheet entities? And if there are any meaningful audit and public reporting requirements for timely consolidating and consolidating financial statements? If what Rogers says is true, the lack of disclosure gives the primary dealers a huge leg up and places independent investors at a severe disadvantage. It’s all about trading price momentum now, as you have recently pointed out.
Jim Rogers is a senile Prima Donna
AFTER THE ELECTION, THIS PUPPY IS DOG MEAT SON. DOG MEAT! Any pullback until then is a bear trap to feed hungry bulls. Then everyone will be bullish and their balls will placed on said countertop for the butcher knife wielding maniac SANS BEARD.
Scott,
is your 1000pts to bring the Dow back in line with the trannies? or, are you using another reference?