The truth is I don't care why the market went up or down. I only care if I can make money trading it.
Central bankers have already hinted toward potentially implementing QE3 -- the tsunami may contribute to that, which is more than likely than not, bullish for US equities -- not to mention if it causes capital flight from Japan to the US. Whether the Fed implements it or not, I don't know. The odds are against the tsunami having any meaningful negative impact on US markets -- unless a nuclear facility has a major meltdown -- and even in that case, I still see it as bullish if it has any impact on increasing the likelihood of QE3. As for the correction, I don't see any evidence that the correction is over -- not yet anyway. It's seems like it's going to be tough to have a broad based rally without Libya's issues and general Middle Eastern issues being resolved. Until there is more clarity there, I don't see a resumption of the uptrend. It doesn't mean that we tank, it probably means we meander sideways unless some other unforeseen negative events take place. Pretty incredible that the Japanese earthquake shifted the earth's axis by 10cm.
I think the main point is that every one knows that the dollar is going to be worthless soon. Either you can hold worth less paper, or you can own a percentage of a company, which would you rather have?
neither if the company is taking in worthless pieces of paper. that said, if you want to dump any of that worthless paper, send it to me for proper disposal.
I am just thinking of the bigger picture and that's the public as a whole losing faith in our financial system because it's rigged and unfortunately it is.
the profits made since 08 should be protected against higher risk,it's very uncertain as to where the qe3 will go,oil prices,us treasuries,the banks or U S banking system,food prices ,job outlooks,soc security and the aging boomers,residential and commercial real estate ,world famine, rising unchecked corporate crime,rising local crime with uemployment,state an local budget deficits,debt default, how many straws can you put on a camel's back, etc..
Strong growing corporate earnings, economic recovery, increasing dividends, and low interest rates. Had to throw those aspects out there they tend to be ignored entirely on Elitetrader. QE2 etc is a US thing and entirely overblown as a market mover on this site. The aspects I listed have been extremely important to markets for decades, much more so then almost everything people chat about. QE2/QE3/QE4 etc doesn't matter anymore. In Canada, we don't have any QE since 2009. Our markets outperform US markets every year ( for 7 straight years ). So what gives then ? It is illogical to think that QE is the main driver when other world markets outperform your US markets. If you truly believe your markets suck, then invest in Canada.
I would say the Japanes buy probably close to zero American products. What is it, what the US is selling to them??? (beside treasury bonds)