we are about to fly!...
the market is showing us the Planet Parade (it is when the planets of the solar system form a perfect line from the 1st planet to the last).
and so do the world's monetary institutions. think about it...
this is what i think is going to happen (ideally!):
step1 - 3 regions eased their policies - China and Australia lowered interest rates (ir) and GB started a QE program (lets call it QEE (E for England))
step2 - ECB lowered ir and now is about to start a QE (which we'll call QE-EU (for European Union)). I expect QEEU to be announced this week.
step3 - QE3 from the FED in mid September. forget about this weeks FOMC - it might give a hint at best, but nothing more.
step4 - the 4th quarters are traditionally very bullish. so earnings and overall economic health will probably demonstrate a very healthy state.
that lets me to conclude an amazingly straight line of monetary events - the Parade...
the start point is this week. right now we see the markets pull back a little - but it's a good sign. it is what usually happens before important meetings such as what we are to have this week (and i'm talking about the ECB - forget the FOMC, it's not relevant right now). as soon as Draghi announces the QEEU the markets will skyrocket (unless we see a disappointing volume of money allocated for bond purchases. which i think is not likely in this extreme situation).
we can already see the Spanish bonds ir down from 7,6% to 6,6%! - a very bullish sign. if and when ECB announces the bond-buying program (and it is precisely the Spanish bonds they'll be targeting) the ir will drop to 5,5% or maybe even lower.
so, fasten your seatbelts - this piece of junk called the economy is about to lift off and skyrocket. BUT keep in mind that the market drew a similar parabola in 2008 and when the market exhausted we had a colossal drop. it is going to be similar (but much worse). i'll write about the crisis later - right now we are facing what i call - an ultimate bull market.
the market is showing us the Planet Parade (it is when the planets of the solar system form a perfect line from the 1st planet to the last).
and so do the world's monetary institutions. think about it...
this is what i think is going to happen (ideally!):
step1 - 3 regions eased their policies - China and Australia lowered interest rates (ir) and GB started a QE program (lets call it QEE (E for England))
step2 - ECB lowered ir and now is about to start a QE (which we'll call QE-EU (for European Union)). I expect QEEU to be announced this week.
step3 - QE3 from the FED in mid September. forget about this weeks FOMC - it might give a hint at best, but nothing more.
step4 - the 4th quarters are traditionally very bullish. so earnings and overall economic health will probably demonstrate a very healthy state.
that lets me to conclude an amazingly straight line of monetary events - the Parade...
the start point is this week. right now we see the markets pull back a little - but it's a good sign. it is what usually happens before important meetings such as what we are to have this week (and i'm talking about the ECB - forget the FOMC, it's not relevant right now). as soon as Draghi announces the QEEU the markets will skyrocket (unless we see a disappointing volume of money allocated for bond purchases. which i think is not likely in this extreme situation).
we can already see the Spanish bonds ir down from 7,6% to 6,6%! - a very bullish sign. if and when ECB announces the bond-buying program (and it is precisely the Spanish bonds they'll be targeting) the ir will drop to 5,5% or maybe even lower.
so, fasten your seatbelts - this piece of junk called the economy is about to lift off and skyrocket. BUT keep in mind that the market drew a similar parabola in 2008 and when the market exhausted we had a colossal drop. it is going to be similar (but much worse). i'll write about the crisis later - right now we are facing what i call - an ultimate bull market.