Wow are you in the dark. The CB is far from losing any control, everything is going according to plan. I know it's hard to believe when you have little idea just how "Federal" our CB is, or any CB for that matter. Monetizing the debt was something that a few powerful men tried to get established for a long time in the US, as well as the whole concept of a CB. CBs losing control, lol. Lemme ask you something, when there were booms & busts, do you think it was because the CBs made mistakes or was it business as usual?
Algorythm wrote: Yeah the Fed pumped a bunch of money into the economy starting about 5 years ago, rate cuts, remember? It's just now hitting the stock market in a big way after first going through real estate, emerging markets and commodities. Why is everyone so surprised and concerned with this current market? Eventually the liquidity was bound to come back and pump the markets up again. ... Algorythm, i believe you have it correct. We in fact have had tremendous liquidity pumped into the economy, some through tax cuts perhaps, but i believe far more important factors were the historically low interest rates during Greenspan's waning years, and the incredible level of borrowing by the government. We have seen that that really pumps up an economy in the short run, as in the early Reagan years, though there was eventually a reaction. Ultimately the piper has to be paid of course.
Nitro, you're confusing SPY, a particular stock, with $SPX, the S&P 500 Index. Rearden gave us a chart of SPY for the past 10 years. Here is a chart of $SPX for the past 10 years.
Tons of liquidity out there. No place else for the dough to go. Real Estate is dead. Next bubble will be in the stock market. John
Dont think its a bubble yet...think will get a selloff before this market gets any higher and becomes a bubble...I bet the bulls would cry if the market saw a 5% dip.
Every week there are millions of people blindly dumping money into mutual funds. The stock market has become the place you have to put allor most of your retirement funds. That's where everyone looking to retire soon are trying to make enough money back from the 2000 drop. Market bias up until everyone retires and pulls money out or gets scared and pulls money out. Then watch out below:eek: Who's there to replace baby boomers dough. Will be good shorting for emini's though and that's what will matter for our income. Hope it doesn't happen, but can't see how it won't. Ciao JIM
Well I see what you are saying, but I stand by what I say (besides I am not sure how I can be confusing SPY with SPX since all I did is quote a chart posted). ETFs are getting a disproportionate amount of the inflows nowadays. The late 90s was a retail/professional trader/prop trader phenomena, on low volume playing spreads. Imo this rally is an institutional rally if there ever was one. Look at what is leading higher - the DOW. nitro