Yup. stealth taxation underway... but unlike a tax which only applies to future earnings inflation taxes what you already have as well.
i dont agree. the smart money is already in the market. it got its signal from bernanke when he made the statement that his goal was to raise stock prices to create a wealth effect. this smart money is just waiting for the right conditions to hand off their stock to the bagholders,ie joe sixpack. joe sixpack will be back when the market again looks safe. right near the top. look at the date of that statement and match it up with a chart of the s&p: http://www.washingtonpost.com/wp-dyn/content/article/2010/11/03/AR2010110307372.html?hpid=topnews "And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion. "
What you see is a rebalancing, money flowing from bonds to stocks. This will end at some point and if volume does not pick up then the market will sink under its own weight. The rebalancing is a vicious circle. As money flows out of bond funds, long-term interest rates go up. If long-term rates increase enough, the market will fall because people will find better yields in bonds. The French call it cul-de-sac I believe. This is what happens when there is no wealth creation and the pie gets redistributed around.
Exactly, with the permabull market in rally mode day after day and global markets in rally mode as well just pushes commodity prices higher along with cost of living, where is the benefit coming from with 50+ million living in poverty......... Thats right the only one benefiting from these bailouts are the rich and wealthy, never mind the working and those in poverty, the gap just keeps getting wider and wider. This credit crisis seems to be working great for the elite class, anyone below will suffer from inflation and being out of job, and if they have a job its not paying anything near what it was paying in 2007.
this market is illiquid...if today's action isn't short squeeze i don't know what is. absolutely no profit taking or selling. december high broken with engulfing. fed is buying all sell orders and sell orders are not even sent to the open market ...the open market is illiquid. absolute dead volume 100 shares tradded hands in the after hours in the spy index. nothing is traded in the open market anymore. 100 shares traded whoopi every flash crash is bought the market makers(regulators) index stocks are rigged....or major ES is rigged and has market makers manipulated the bid and ask..tyou don't need market makers for oil stock indexes. this is fed induced market...with trillions pumped into the markets...the market could go parabolic. this is the kind of market where the market can be irrational longer than your short positions can be solvent. the market or economy can suck but this market is fed induced...which is why if the fed pulls support or raise interest rates to 4% this market gone. whether it's the fed manipulating the market or market makers..market manipulation always ends badly for everyone including longs in 1982 interest rates was 15% now interest rate is 0% and stocks were single digits and insiders were buying big difference between now and 1982
there is no reason to sell as long as bernanke has guaranteed a put on the market. what happens when/if he has to withdraw is the big question.
markets will tumble and stocks sold at intrinsic value and single p/e and traded for what it is worth... and ipo like facebook won't get 50 billion valuations. reason this market is so hard to trade it is illiquid. you risk when going long or short... too many shorts positioning for january sell off...this illiquid market
you can't sell in the open market the bid is 100 shares. large funds don't even participate in the open market anymore. only retail traders participate in the open market..any large market order would crash the market like may 6,2010...someobody did a market order. and wiped out all bids. there are a lot flat days where the marekt flatlines for 4 hours straight. doji. it like the market makers can control the bid and ask..since volume is so thin the market doeswn't move