With Central Banks now openly buying stocks, how can the Bull end?

Refer to my previous point about the history of central bank gold purchasing. Why would it be any different for shares?

 

The original question was: "With central banks now buying stocks, how can the bull end?"

This is ass backwards.

The fact that central banks are now buying is itself a strong indication the bull IS ENDING.

 

Agreed....

This seems like a desperate measure that means one of two outcomes:

1- There has been a paradigm shift in monetary theory that wasn't possible previously when we were tied to a gold standard, but now Central Banks will be able to engineer an out come regardless of fundamentals, demographics, productivity, debt levels, etc...... (very unlikely IMO)

-or-

2- This will end rather badly....... (This is the way I'm leaning, but don't know when it will end. I have yet to see anything that would cause me to get out of the market however, but I'm on high alert and getting nervous)

 

Door number one is alchemy.

 

All bull markets will have to come to an end, the question is just when and how. At some point the DOW will probably be 10k again, and at some point it might even be 20k. We don’t know – with the Fed pumping in a lot of liquidity, it would not surprise me if we kept going higher though.

 

On the other had door number two could still be far into the future and many points higher.

 

On the other had door number two could still be far into the future and many points higher.

 

There is no training, classroom or otherwise, that can prepare you for trading the last third of a move, whether it's the end of a bull market or the end of a bear market.

-- Paul Tudor Jones

 

Love it.

Just imagine if T-Bills went back to 4% - 5%, where they were 6 years ago. Stocks would collapse, probably drop 50%.

I don't follow the stuff that closely, but Quantitative Easing is probably completely illegal and unconstitutional. It is really a spending program, which are always supposed to originate in the House of Representatives.

And it is doing nothing for dollar stability or increasing employment, which are the only mandates the FED has. Raison d'etre, so to speak.

 

I agree the liquidity won’t be sustainable forever… Eventually the Fed will have to pull out of the markets at which point in time we’ll get a real test of the economy