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  • Investors think the Fed is doing QE again. That's giving markets an artificial boost

    From cnn.com

    The Federal Reserve has taken great pains to stress that its rescue of the overnight lending market is not a stealth version of quantitative easing. Wall Street isn't buying it, though. The September spike in overnight lending rates forced the Fed to take dramatic action to relieve the stress. The US central bank began aggressively pumping in billions of dollars a day and purchasing $60 billion of Treasury bills per month. The moves lifted the Fed's balance sheet beyond $4 trillion. And despite key differences, they've brought back memories of the Fed's crisis-era programs. Known as quantitative easing, or QE1, QE2 ... (full story)

bs
I don't know how long it will take but I'm almost sure that the us stocks will sharply drop after Christmas. for example Dow has at least 700-1000points bubbles. I am looking forward to seeing it in the near future.
Well thats what I see too.
Asset Prices going up.. earnings/yield choked.
P/E ratios confirm.
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  •  Guest
  • | IP XX.XX.121.99
Who cares? Investors think the FED will continue to expand its balance... and they can do it for almost as long as they want... how long can they? Nobody knows, but remember, don't fight the Fed. They are all-in and speeding up, they simply can't brake, only a wall will do the job, but no wall in sight.
Quoting Guest
Who cares? Investors think the FED will continue to expand its balance... and they can do it for almost as long as they want... how long can they? Nobody knows, but remember, don't fight the Fed. They are all-in and speeding up, they simply can't brake, only a wall will do the job, but no wall in sight.
Cool.. So where do you see the money printing, gravy train ending?
And how big does the current account deficit have to get to create red flags? We know what happened to buyers in the 2009 spike and in 1999-2002 bubble. Seems to me at current levels were heading into that territory.
US equities currently worth about $35Trillion,, the deficit is $23Trillion.
Average P/E now 24.. mean is 15. Earnings way behind but markets knee deep in credit thanks to QE.it like the Great Tax Cuts.. Investment did not boom and workers haent seen the promised bump in pay.. The richest Americans got even richer while corporations used a lot of the new money to keep shareholders happy and in buybacks.
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Quoting sadeghi
I don't know how long it will take but I'm almost sure that the us stocks will sharply drop after Christmas. for example Dow has at least 700-1000points bubbles. I am looking forward to seeing it in the near future.
This is why they're doing QE, last year that's what we saw, I don't think we will see it again, they are adding more liquidity to the banks, companies can borrow more liberally, keeps the stocks inflated... they ain't going to drop it yet.
Quoting sadeghi
I don't know how long it will take but I'm almost sure that the us stocks will sharply drop after Christmas. for example Dow has at least 700-1000points bubbles. I am looking forward to seeing it in the near future.
A 5 % DOW drop will be roughly 1400 points. We will see that kind of correction next Year for sure.
"It's better to be out wishing to be in... than to be in wishing to be out!
Quoting Dutchy Daxy
{quote} A 5 % DOW drop will be roughly 1400 points. We will see that kind of correction next Year for sure.
27955 at first step and finally 27300.
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Election year skews much
  •  Guest
  • | IP XX.XXX.22.21
"Who cares? Investors think the FED will continue to expand its balance... and they can do it for almost as long as they want... how long can they? Nobody knows, but remember, don't fight the Fed. They are all-in and speeding up, they simply can't brake, only a wall will do the job, but no wall in sight"

Anybody can see a Wall, its is the cliff that gets you
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  • Story Stats
  • Posted: Dec 19, 2019 9:28am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 10  /  Views: 12,103