2 replies to this topic

[James Quillian]

Federal Reserve announces QE and starts to allude to the wealth effect which is a fancy term for providing welfare. The wealth effect is implemented by keeping markets from clearing. New incentives are created as private organizations look for ways to exploit the Feds goosing initiative. New ways to profit by creating and managing uptrends emerge. The news media and all other organizations that benefit from rising stock prices pitch in. The news media helps manage public opinion. Capital gets allocated inefficiently and the economy rots from the inside out. All parties make good use of the human herding instinct. Sound bites start to replace analysis. Stockholders become complacent, putting of profit taking until public assistance is taken away. IRS’s, 401k and any holdings without stops become death traps. After markets have been prevented from clearing it happens all at once in a yikes moment.

[Data]

Watch the EURJPY as it's now closely correlated and likely lead any equity decline by 1-2 weeks.

http://finance.yahoo...RJPY=X;range=3m

[opinionated]

One has to get into their head and play the game.