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SPDR S&P 500 ETF Message Board

  • alsteele_99 alsteele_99 Jun 11, 2013 10:06 AM Flag

    why would you sell?

    QE is still going on to inflate equities

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    • montecristoholdings@gmail.com montecristoholdings Jun 11, 2013 10:27 AM Flag

      Why would you sell? - hmmm-that may be an actually good question. Let me take a shot at it. So we have been in a bull market for over 4 years-going into 5 actually. Bull markets historically have never lasted more than 4. But, assuming this could be the exception to the rule there are other factors like P/E multiples which have always been a standard of 10-12-15 max. Now they are at double that. But let's assume this may be another exception. Companies at the DOW are at 0% growth so savvy investors are already wondering what they are buying. Picture the housing bubble. Do you remember when investors were buying properties to rent only to later realize their mortgage was higher than the rent they could collect? Well eventually investors realized and the asset bubble exploded. Right now every single asset is in a bubble going from housing, to equities and to bonds. There is only so much that you can print before going into obvious elephant in the room inflation. I see the SPY going to 1400 before it can stabilize again

    • there is mounting pressure to discontinue QE as it is inflation.

    • QE brings down the 10 yr rate, it has risen to 2.2%.

    • QE is a sham and has always been. Nobody with any sense has believed any of the 2010-2013 was anything but fluff, but we played aLONG anyway because that was what the market was doing.... in any case, QE may still have one last leg left in it, maybe not.

 
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