No such thing as down when it comes to global equity markets.. Asia is surging.... Nikkei, Shanghai Comp hit new highs on US lead *NIKKEI19776.09 215.87 +1.10% *HSI24517.75 142.51 +0.58% *CHINA3676.20 58.88 +1.63% Think of how many decades you would have to wait to see these gains in your bank account paying 0.01-0.03% It would take over 50 years to get these gains that only take a few hours if you invest in these risk free markets...
rinse and repeat, same thing day in day out, drive the markets higher at the open and make them float higher the rest of the day, risk free markets.... And today goldman sachs came out with this headline, "NO BUBBLE TROUBLE FOR STOCKS YET" Now do you think goldman sachs is going to come out and say stocks are in a bubble, go back to the late 90s during the dot com bubble, no saw the collapse coming, go back to the private equity bubble, the housing bubble in mid 2000's did anyone see that collapse coming? How about the oil drop from 100+ a barrel to nearly $40 in 6 months, did anyone see that coming, NO, so take this headline and toss it out, stocks are in a major bubble, equities are being lifted around the world by easy money policies and the next bubble is already expanding worldwide, Do not listen to these fools who say were not in a bubble, they were the same fools these last 2 decades saying there wasn't a bubble when there was, same thing holds true now, get ready for the next bursting bubble, this one though is going to be bigger than the dot com and housing bubble put together.... No bubble trouble for stocks yet: Goldman Sachs Risky assets such as equities are not yet in bubble territory, Goldman Sachs Chief Global Equity Strategist Peter Oppenheimer said Monday. Talking to CNBC Europe's "Squawk Box" about the risk of asset-price bubbles, Oppenheimer said an inevitable consequence of a having interest rates near zero was that many investors across the world were pushed up the "risk curve." "That could result in ultimately risky assets becoming overvalued like probably other asset classes," he said. "It doesn't look clear to me that risky assets like equity markets are yet in that bubbly territory." Fuelled by a 1 trillion euro ($1.08 trillion) asset-purchase program from the European Central Bank, European stocks markets have soared this year, with the pan-European Euro Stoxx 600 Index up some 17 percent, while government bond yields in many parts of the euro zone have hit record lows. In the U.S., the blue-chip Dow Jones stock index and broader S&P 500 have seen record highs this year, helped by growing optimism about the outlook for the U.S. economy. Last week, the tech-heavy Nasdaq hit a 15-year peak. Read MoreNasdaq 5,000: Bubble or not? Stocks received a further boost last week when the U.S. Federal Reserve indicated that interest rates would remain low for some time, even if they are lifted later this year. The Fed's key interest rate is just 0.25 percent, a level it has held since 2008 when it was cut amid the global financial crisis. Lucas Jackson | Reuters Traders work on the floor of the New York Stock Exchange. Not everyone is as optimistic as Oppenheimer when it comes to talk of a bubble, however. St. Louis Federal Reserve President James Bullard told CNBC he was concerned that a backdrop of low interest rates could fuel a sharp rise in the value of assets. "Interest rates are going to be low – is that going to feed through into an asset-price bubble of some kind over the next couple of years?" he said. "The U.S. has been plagued by massive bubbles in the last two decades – the tech bubble and a housing bubble. The second one caused a macro economic disaster, so that is a massive concern going forward." The worry is that when an asset rises quickly in value, it risks becoming inflated and vulnerable to a crash that could have wider implications for financial markets. Read MoreShiller warns bond investors: Beware of 'crash'! Asked whether he thought government bond markets were in "bubbly territory," Oppenheimer said: "I think government bond markets are reflecting very weak fundamentals, but in our view, yields are too low especially in Europe." "Bonds are overvalued, which is why we prefer equities," he added. Germany's benchmark 10-year Bund yield hovered at about 0.18 percent on Monday – it has fallen about 145 basis points over the past year and more than 300 basis points over the past five years.
Another day another article about the disconnect between the market and fundamentals, I have been saying this for quite sometime, this market is not about fundamentals, its about central banks and how much QE and free trillions they can hand out to keep the prop job and bubble going, its all in black and white and I still have no idea why its being ignored, the red flags are lifted very high, yes I know this bubble can keep getting bigger and bigger, but why is it that the only way we create "growth" any more in our economies is through the creation of asset bubbles, where is the real growth in todays world?? Well it doesn't exist, all these world economies are fixing this game of upward momentum, there isnt real growth stories left any more, its all in the creation and backs of the central banks to keep this fantasy like world going.... After reading this article you will notice all these gains are in the hands of the central banks, there are 2 charts that didn't post but if you go to this link you can view them, http://finance.yahoo.com/news/forget-fundamentals-market-just-one-101500022.html Aside from that one interesting fact is that in the last 3 months alone there have been 25 rate cuts through out the world economies, how can anyone possibly believe any of the growth stories you hear when all these economies are cutting rates and pumping QE and loads of stimulus into there failing economies... At the rate these economies are moving I wouldn't doubt that all economies have 0% rates and continuous stimulus going into the next decade...oh and I believe negative interest rates are coming for most world economies sooner than you think. Forget the Fundamentals, This Market Is About Just One Thing By Anthony Mirhaydari4 hours ago It's full-on euphoria. The Dow Jones Industrial Average is back over 18,000. The Nasdaq Composite is above 5,000. The Russell 2000 is pushing to new record highs. Overseas, Japan's Nikkei 225 Composite, which dipped below 17,000 early in the year, took about a month to surge from 18,000 to 19,000 and is now rapidly approaching the 20,000 level — heights that haven't been seen since 2000. Germany's DAX recently traded above 12,000 for the first time and is up nearly 30 percent from the lows set earlier this year. The same thing is happening in China. The Shanghai Composite Index is up 16 percent from its February lows. The common theme: Seven years after the financial crisis — created in the wake of a housing bubble fueled by low interest rates — global central bankers keep doling out stimulus. Related: Will Fed Rate Hikes Cost You in Higher Taxes? While Federal Reserve policymakers just opened the door to raising rates for the first time since 2006 as soon as June, they also greatly reduced their estimate of the pace at which rates will rise — an acknowledgement of soft inflation, recent declines in U.S. economic data and the dampening effect the strong dollar could have on growth and earnings. That was the green light the bulls had been waiting for. If the Fed will be slow in tightening, other major central banks are just ramping up their stimulus efforts, from a new sovereign bond-buying program by the European Central Bank to chatter that the Bank of Japan could start buying individual stocks to rate cuts by the People's Bank of China. Overall, there have been 25 interest rate cuts so far this year. Related: Yellen Really Doesn’t Want to Take Away the Punch Bowl These new easing efforts have been unleashed in response to a stalling of economic growth globally as well as the deflationary impulse created by the dollar's 25 percent-plus rise out of last summer's lows. The stakes are high since historically big moves like this have set off currency crises in emerging economies. The situation is made worse by the reliance of foreign economies on cheap dollar-based credit, something I recently wrote about. If you wanted confirmation that it's all about the central banks now — and not about fundamentals like earnings and economic growth — consider the chart below. It shows how stocks globally have disconnected from earnings growth, fueled by an expansion of price-to-earnings multiples. GDPNow Q1 growth estimate has collapsed to just 0.3 percent while the Citigroup Economic Surprise Index, shown below, has fallen to levels not seen since early 2011 just before the start of the bull market's worst correction to date: A 21.6 percent peak-to-trough decline in the S&P 500. even though they should; they will wait for the job market to tighten further and create clear and undeniable wage inflation. We're not there yet. Thus, the bubble will grow. Related: The Middle Class Is Struggling in All 50 States Ed Yardeni of Yardeni Research has been telling clients to prepare for an "Irrational Exuberance meltup scenario" thanks, once again, to the work of central bank officials. Yellen is the star now as U.S. stocks haven't participated in the rises already seen across Asia and Europe. That's set to change. Yardeni admitted last week that this is all a bit ridiculous, and probably shouldn't be happening, but for now it isn't necessarily a bad thing. "This is not about investing, this is all about the central bankers," he clarified. "These markets are all rigged, and I don't say that critically, I just say that factually." Enjoy the ride while it lasts, but keep that warning in mind. http://finance.yahoo.com/news/forget-fundamentals-market-just-one-101500022.html
26 RATE CUTS since the beginning of 2015 and every time I tune into one of those financial channels there is someone talking up how great world economies are doing.... 26 RATE CUTS since JANUARY and were only still 3 months into the new year, will probably see over 100 rate cuts by 3rd Qu of 2015.... http://www.cbrates.com/decisions.htm
They will juice it up even higher as we approach the lunch hour on the east coast....just watch...same thing over and over and over.