I agree sloth game over after 5% with 3 years of housing inventory out there. I wrote this on my blog this morning some of it I wrote earlier on Nav's...This post..."uh, QE3 is inevitable"...is getting to be as tiresome and tedious as the Zweig Market Breadth posts. Let's reiterate: Ben can't push another QE3 because that would take the long bond above 5% and ruin the "recovery." All he's done is create the ground for tremendous instability in the market. Dr. Hussman calls it balancing bricks at the top of a flagpole.
Term limits is a red herring...has nothing to do with the Fed.
"btw at this point a QE3 may be a negative more than a positive for the markets as it will send coms to outer space and kill any recovery they are attempting through the stock market. Best scenario would be to interject smaller amounts of cash into the markets over the next 2.5 years at crucial points until the demographics and reduction of housing inventory help out around 2014. If so the chop for these years will drive most traders nuts or broke or both. lol
As I mentioned at the start of this year I expect an oscillator type year not a trend type and so far it has not failed to play out. It could last until the start of 2014. We'll see as we go.
April 14, 2011 7:01 AM"