As long as the Federal Reserve keeps printing money for the banks, and as long as the administration keeps raising the risks of normal business, personal, and mortgage lending... then the banks will continue to plow much of the new Monopoly money into the stock market as one of the only other available places to put it.
Yes, this is a bubble. And yes, like any other bubble it will necessarily “pop” or deflate one of these days.
Meanwhile, given the political situation in WashDC, the stock market is about all that’s left of the American economy...
“Hold on tight!”....
It’s hard to make any sense out of reports like this. It’s message seems to be: ‘’Run for the lifeboats! But, then again, maybe not.’’
However, it is possible to evaluate certain theories. For example, technical analysts have recently been predicting that, according to their charts and waves and tea leaves, when the S&P 500 reaches 1446, that will be the end of the long-term bull market. The S&P 500 is now at 1456, having shot up during the past few days of QE3-induced market euphoria. But it’s coming down.
We’ll see in the next few weeks whether technical analysis has any merit or whether it’s a sham whose predictions we can safely disregard and not waste our time on in the future.
The Fed printing money may be good for Wall Street, but the rest of the nation is in the midst of Stagflation. Been there done that in the mid to late 70’s. The end result is not pretty.