$18 trillion in debt, and the us gov's plan is to give the 1% a boyant stock market so the 99% can admire the 1%. yet our job particpation rate keeps rising and the teen and 20 yr olds are at 15+ % unemployment. college grads are graduating with $100k in debt and working as shift supervisors at mcdonalds and macys. meanwhile, putin is about to start the cold war of the century. nothing to worry about until the market clearly shows it can actually go down instead of up. right? that's how i'm playing it. puttin' (putin) all my money on black, and lettn' ride!!!
It's simple stupid, buy spy and the market, get 1.6% yield, go to your bank and get 0.18%. and, so the game goes that the fed has put into place. even the fed is putting their pension money in stocks because they know they will "never" raise interest rates again in all of our lifetimes. so what if bullishness is off the chart at aaii and other bull/bear status keepers. we keep going higher until spy yield about the same at what you get at the bank. so i would guess that would take us up another 100% on spy in the next couple of years. party!!!
So much hype being priced into biotech when all of the biotech companies going up aren't even making an EBOLA RX. Just shows you how gullible people are today.
Watch the fed talk as if we need the last bit of qe in place due to weakening data. but, in reality, they don't have an answer to the rest of the world doing qe today and driving us dollar up, making the dollar exchange an advantage to the rest of the world. let's see if the fed can really do the right thing this time and complete the taper. i seriously doubt it.
So what does the fed do tomorrow to calm a world that's over-sensitive to ebola news, isis out of control and russia-ukrane tensions building trouble for eurozone? they do what they've learned to do in past 3 years, print more money and talk as if the economy is coming along but just not quite what they'd like to see at this point, so keeping rates low for "even more of an extended period of time" is what comes next. and, they'll likely tell us that final tidbit of qe is staying on until end of year, to give them the flexability of reviving qe part iii . and, because the rest of the world has learned how to do the qe shuffle from the fed's lead. we wouldn't want the rest of the world doing qe and getting the benefit of the stronger dollar exchange would we?
I fully expect the fed to leave the final round of qe on the table tomorrow at their fomc meeting/announcement. why? So they don't have to create a whole new qe program in a month or two should the world growth picture slow even further. they've become addicted to qe. unfortunately, more qe or less, the quality of jobs and jobs for those who have stopped looking over past 3 years is lost forever in the united states. that's the real trajedy. the fed is now your banker because you've put all of your spare money in stocks in hopes the fed does the right thing. and, they will try their best but they'll make mistakes along the way. like sticking around with qe far longer and overstaying their welcome. they will give the market the most they can give it right now, and that's keeping the last bit of qe around till the end of year, just watch.
Too bad james bullard use a ploy of possible qe to manipulate stocks because we could have put in a real bottom. now we just have to do it all over again, thanks to another fed member trying to play god with the stock market. what the heck is wrong with these people?
"i make money by studying carl icahn's stupidity" - such a great article!!! since the big claim that he's making money in apple stock, icahn is getting whipped hard in shares of netflix, rig, chk, ebay, and herbalife. honestly, the only way a personality investor makes money is if he can convince stupid people running cnbc and bloomberg and those watching these networks instead of working, to buy these pos companies. they are dogs that get beaten down and when they are lying on their backs, personality investors like icahn come in with money from his fund followers and buys them then tells cnbc and bloomberg that he's bought them. and, now that a few have done well after telling network viewers about them, it's become a game on wall street to try and buy the next one that he tells us about that's a new buy. if this isn't a sign of a top in stocks, along with all of the alibaba hoopla, i don't know what is. just look at the mess people have themselves in, after buying icahn's pos stocks. apple's up but what's down? pretty much icahn's entire portfolio. And, those stocks with exposure to natgas or oil are dessimated. i'll stick to my own investment plan, thank you.
Biotech's going up on ebola scare and yet none of the stocks in pbe etf are ebola drug companeis, lol! shows you how gulible short term stock gamblers can become.
Hmm, is it finally that time when a stagnant ecomy actually = a stagnant stock market? maybe for a day or two until the fed piles on more reason for the wealth man's portfolio to rise, creating even a wider disparity in inequality in the u.s. just what yellen and the rich say they are "concerned about". who are they shttn'!!!? right?
Yellen says she's concerned about inequlity; millionares say they're concerned about inequality; obama's out golfing. sends a great message to the guy on the street trying to make a living, doesn't it? truth? yellen pockets millions, millionaires are out partying on their extra gains from stocks, and obama is still out golfing.
Obama is so out of touch, he's looking for the answer to inequality at the 19th hole at the lynx! last i heard, obama has been playing more golf lately. seems to me, that that's an unusual place to look for the answer to u.s. Inequality. what do you think?
1. Did qe bring back higher wages? No 2. Did qe bring back jobs for the youth in amercia? No 3. Did qe cut the number of people giving up on looking for jobs? No 4. Did qe prolong the us recession? Absolutely yes! all qe did was "prop stocks and housing prices" for a few years. now when the fed is pulling back on qe, housing is slowing and prices are stagnating in the us and around the world. what a trillion dollar failure qe was!!! pathetic!!! and still, you will see yellen and the fed banter about with their talk about how the economy is gaining strength but just not quite what they would like to see, so therefore we will continue to keep rates low for an extended period of time. and, the bs about the true of qe keeps rolling, rich folk portfolios keep gettting bigger, the inequality in america gets even more pronouced and wider. and, the fed does nothing, congress does nothing, and obama is nowhere to be found ... Oh yeah, he's out golfing another round on tax payers money. great job voting this clown into office. talk about being out of touch, right?
Cnbc is the bs network of the century, with posts like this one about how the rich "care about inequality" in the u.s. the only reason the rich care about inequality in the u.s. Is because they don't want the general economy to slow due to the majority not having enough discretionary money to support the stock prices held by the rich. and, so that the poor don't mug them on the street and take their car and their money. the rich live in fear only because they don't want to lose their status in life as a rich person. that's all that they really care about. everything else makes for cute cnbc articles but the truth is undisputable. and, we all know the truth is what we live with each day, not the hope that cnbc is trying to instill with articles about how the rich care about inequality in the u.s. cnbc is just and extension of the fed, in fact i believe that the fed pays off cnbc to promote stories like this one, to hopefully instill the hope that the fed's qe was unable to instill. desperation is beginning to take hold in the us as qe is showing it's true colors ... Pure failure!!
To repeat: i will never sell the thousands of shares i bought in selloff this month from the weak-handed rich!! ps- and, noone believes that the rich/millionaires care about inequality in the u.s. what a joke!!! they sleep in mansions, the poor sleep in cardboard boxes under overpasses. like the rich can empathize, right? Sleep in a box under an overpass for a month or a year and then tell us how you care about the inequality in the u.s., and not until you live the life of those who have nothing.
Ebola = more kick the can down the road + no rate increase + no further taper to leave door open to adjusting qe back to full force if world economies continue to weaken as they are.
The only time stocks do anything today is when bullard from the fed or some other official "from the fed" says something to push stocks higher. notice how we were in free fall 10 days ago and just as we neared the 10% down in decline, along comes bullard from the fed and his notorious comment that came to rescue yet again, "we may continue or add to qe". bamm! stocks stop on a dime and reverse higher that day. and, therefore, i proclaim "the fed is the stock market". and, if the fed told us they were passing on any comments this week about rates and the economy, the stock market would fall, and we all know it. so all that is holding this pile of poo up is the clout we give to the fed. is that a wise reason to own stocks today at all time highs and after a 130% gain in 3 years? seems like a reach to me, how about you? still we all play the game and ride the fed for tha extra 3 to 5% because we're afraid of what? holding us currency/cash? that should say something too about the health of our country and the companies that rely on our economy for their existance. just seems like a real house of cards with the fed being the central foundation card, holding all of the other cards up in support of the house's structure.
Exerpt from yellen's note pad for yellenspeak ... Data has changed and so has our decision to consider raising rates. she will site overseas weakness and ebola fears as being unsettling. therefore we will continue w/out kicking the can down the road as this is all that we can do at this time. they're extending final qe instead of tapering it, leaving open the notion that more will likely come should data weaken going forward. this way they won't have to start a whole new qe, just adjust current qe. take notes my friends.
It will be no surprise to me to see the fed and yellen talk the talk by completely pulling any notion of higher rates off the table for an extended period of time, essentially meaning eternity. this will send stocks straight up and setting stage for the real surprise next april/may when fed says they're ready to pull the extended period phrase from their fomc statement.
Fed words will squash vix into 52 wk lows, it's now the job of the fed to "calm vixens". watch and learn from the fed's ability to leave in the words "prolonged period of time" or another catchy phrase that simply means they may some day have the data needed to raise rates, but it sure the heck isn't today. with housing markets cooling off, true unemployment rate of 14%, and lack of quality employment in the us, the fed would have to be out of their gord to suggest higher rates any time soon. they would literally blow up the stock market with such reteric. stay tuned for kicking the can further out so stocks can continue climb for 2014. it won't be until you lest expect it that the fed surprises in the other direction. they like to get their shorts on during periods of euphoria. first they need to send markets straight up like they will do tomorrow and wed.