“I am on record here as stating that the entire stock market rally is nothing but a Federal Reserve induced bubble brought about by artificially low interest rates starving investors for yield elsewhere. The Fed, along with the Bank of Japan and the ECB I might add, are determined to corral investors and herd them, unthinking like cattle, into equities; the goal being to create an atmosphere of general euphoria towards the economy boosting consumer confidence in the hopes of inducing them to take on more debt and spend.
This is akin to building a towering skyscraper on a foundation of PLAY-DO. It may look wonderful and draw gasps of admiration but it has no stability and will not be able to withstand any external shocks.” -Dan Norcini
Perceptive, Independent Market commentators like Trader Dan Norcini generally agree that The Fed’s (and Bank of Japan and European and other Central Banks) Easy Paper Money Policies are Creating An Asset Bubble in the Equities Market that is not justified by Economic Fundamentals.
And they generally agree that it can not last. We agree.
That raises the Key Question of which Assets to Invest in Now, and “When the Bubble Will Burst,” questions which we address here: [Read more...]