ECB doing their thing, the Fed buying MBS, so now what? Politics? Earnings? Reality? Tell me what drives this market higher from here? A new iPhone? Is that it? Looking at gas prices? Do you think the 80% in this country who barely get by week to week are going to buy goods when gas is over $4?
to my understanding, the current Fed action expands the money supply... stocks look like they are correlated strongly to the expanding money supply and nothing else, at least I've heard and read.
so that means until they take actions to shrink the money supply, such as a sudden raise in interest rates, the ridiculous bull market will get even more ludicrous.... what is it going to take for them to consider raising rates? Will Obama even let them consider it before the election? Doubtful.
That is what you are supposed to think but I see it very differently. You can't escape reality, we are paying record prices for fuel and the winter heating season is right around the corner. The market is completely disconnected from reality, there is no demand for goods and there is no growth or jobs to be had.