there is lot of hope in QE 3. but when I look those economic data, the labor market, the service sectors. I think QE 3 is a wrong expectation, maybe a surprise with rate hike. if a rate hike happens, what will you guys bet? if a QE3 is given just as expetected, what will you guys bet or think? if unchanged, what will you bet?
The markets are expecting more QE. Ben will not upset the market in any way. If he fails to deliver, which I highly doubt, then the market sells off hard. Maybe maybe maybe the market sells on the news of more QE. Just a guessing game.
Market is addicted to QE, what else is new? Spiking on mediocre job report, is that the market black mailing Ben to deliver the goods? Ben has opened the Pandora box and there is no closing without a downward spiral. Either way, it will eventually be in "correction mode". QE might shift the correction by a few months to a year, but what comes up must comes down. It's evident that there's still more can kicking down the road. "Investors" are still waiting patiently while ignoring [bad] economic signs hoping that Ben will lead them to the promise land. There's not an ultimatum for QE yet due to other issues weighting in such as US election, Federal budget, European resolution, etc...Eventually, the market will have to be refueled again and Ben must turn on the spigot or else.