Attention

The opinions expressed by columnists are their own and do not represent our advertisers

Tuesday, August 12, 2014

The Fed Is Not Your Friend

During the last 64 months “buying the dips” has been a fabulously successful proposition. As shown in the sizzling graph of the NASDAQ 100 below, at it recent peak just under 4,000 this index of the high-growth, big cap non-financials stood at an astonishing 3.5X its March 2009 low. Moreover, during that 64 month period, there were but five minor market corrections—-the three largest reflecting just a 7-8% dip from the previous interim high. And as the index closed upon its current nosebleed heights, the dips became increasingly shallower, meaning that the reward for buying setbacks came early and often.

So yesterday’s 2% dip will undoubtedly be construed as still another buying opportunity by the well-trained seals and computerized algos which populate the Wall Street casino. But that could be a fatal mistake for one overpowering reason: The radical monetary policy experiment behind this parabolic graph is in the final stages of its appointed path toward self-destruction.

More

1 comment:

Anonymous said...

This is a debtor nation. We have been taught that credit is the God of the era. We bought into the conspiracy that the more you owe..the more your worth. Over extend to prosper. You must live above your means to attract money. If you close a credit card it brings DOWN your credit score. If you have 10K in credit available you are 10K richer. This load of crap has been sold to everyone who owns a credit card with a balance. You have to buy and go into debt to have a good credit score. This is a communist plot and it has succeeded.