The losers of the year will rally and the bubble stocks will fall. Sanity will return to this market.
Since the Fed is to blame for the wider gap in inequality, Obama better do something about the Fed. I don't think Obama is very happy with the Fed helping Wall Street, causing bubbles, and destroying seniors on fixed income. I don't think there is anyone that likes the Fed but money managers.
There is significant put buying on TLT so you can expect TLT to move even lower by Friday. If TLT moves even lower, what do you think will happen to US equities? I don't know who is buying or manipulating now but any rally will be short lived.
This is the difference between yesterday and today. There are too many other attractive assets to buy. You can get emerging market bonds that have a yield of 4% that mature in less than 5 years. Why bother with US equities that offer very little dividend and very high risk.
This happens when the European market is just about to close. Buy EUO and you will be happy today.
TLT should be tanking today.
Williams spoke with Reuters in an interview:
•I would not lower the unemployment thresholds
•Fed should cap QE3 and end it over a period of months once ‘completely confident’ job market is on right track
•Unemployment could be at 6.5% a lot sooner than we expect
•Fed should be more concrete about what could prompt rate hikes once unemployment falls below 6.5%
•Need to emphasize that for rates to rise, we will need to see further economic and jobs growth
•Fed discusses monetary policy at every meeting, this one will be no different
•He is in favor of cutting interest on excess bank reserves, would be a small positive
So what he’s saying is that it’s time to signal a taper but include an IOER cut along with strong language saying no rate hikes are coming.
The lower Canadian dollar is a big boost to AT. Do any of the analysts mention this?
I don't own the stock but I own that ATP.DB.A debentures that yield almost 20% annually.
This is what should be happening since the P/E of Asian stocks is much lower.
This market is about buying the most overvalued stocks out there. Looks like some short covering on mid caps today and the volume on MDY was above average.
Margin debt—a measure of how much market participants are borrowing to buy stocks—has soared to $412.5 billion on the New York Stock Exchange. The number represents a 13.2 percent gain from the beginning of 2013 and is fully 50 percent higher than the level in January 2012.