That is the whole purpose of Macro economics:
1. keep the interest rate low so that people will buy things on credit, whether they need them or not. Who cares about those living off of savings income?
2. flood the system with extra cash so that there is money to spend. Runaway inflation? Who cares about those on pensions or other forms of fixed income?
3. add to the government drones to drive down the unemployment rate. Who cares if they do any productive work?
no worries wally. you ride the train with big benny. im with rich on this one. however im different from rich in that 95% of gains since 2010 are big bennies influence. stocks being "cheap" today is a dangerous call.....dollar bills are cheap and we are just getting back to 2000 highs on the SP500. maybe that coorelation should be studied a little closer.....or not. the drop in 2008 is going to be replicated when bernanke owns every mortgage, every student loan, every govt gond, everything. Im not sure who they plan to pawn this stuff off to, but ill be riding the next short of the century when it comes.
But that's not now. We're on a clear path up and it makes no sense to not take advantage of it. In the mean time you'll just ignore the biggest bull run since the 2005? Why do you hate taking the easy long position? We're closer to $116 than to $60. Would you have to take an optimistic view of the world to go long? It's a mystery.
Why would you possibly be on the wrong side of this trade? The Fed been telegraphing this move for three years. Maybe it'll work maybe not. But betting against the Fed is suicide. You don't have to worry about them backing off the stimulus until unemployment is below 6.5%. They've told us that publicly. Maybe you don't believe them? Toothy and Bud Lightyear said it best "QE to infinity and beyond".
Agree in principle. We are on a ' global easy money' growth curve here, fundamentals are secondary.. Until the US unemployment drops to near 7% (mid 2014 earliest) the Fed and other central banks will remain bullish for equities. I say, enjoy the glide upward.