They are buying 25% of SPY per year. They will own it all in 4 years. And that is SPY. If it is QQQ, they would buy all of it in 9 months. But I guess there is no limit, we can issue more shares and they can print more dollars. If they can borrow at -10% by setting rates there, why not? Free money.
The second part of what you are saying can't be correct. I have to think about it before I stick my foot in my mouth.
Of course I am wrong. But I am waiting for it to be painfully obvious that I am wrong...otherwise, it hardly is a bubble.
Wacked markets: strong beat on jobs, dollar weakens. US created 255,000 jobs in July vs. 180,000 jobs expected http://www.cnbc.com/2016/08/05/nonfarm-payrolls-july-2016.html
Quarter million jobs added and fed still not moving rates......hmmmmm.....they probably want 7% inflation and 2% unemployment rate before they hike to 0.75%.
My model is showing the most schism it has show in probably nine+ months. Through its lense, I can argue for both SPX 2300 and SPX 1700. Last time I saw it like this divided was before last August. FWIW.
You know when you are confused when you agree with two opposite points of view. I agree with GS that the FED is more likely than not to raise in December. I also agree with MS that this is probably not a dollar buy Goldman Says Buy Dollar on Fed, Morgan Stanley Says Not So Fast http://www.bloomberg.com/news/artic...-buy-dollar-as-traders-play-catch-up-with-fed