The market has gained double digits in last few months. COnsidering long term gains are 6-7% yearly, that is significant rise. People are capitulating out of CD’s & Treasury bonds because the yields are ridiculously low. That money is flowing into the only game in town...stock market.
The sequester could be the catalyst for abrupt reversal.
Some Trader Has Made A Very Big Bet That Something Very Bad Will Happen Within The Next 60 Days
I walk around in stunned disbelief every day that the big correction/crash hasn`t happened yet. The US economy is running of fumes from QE/ZIRP/OPTWIST.
Again, another Govt. bubble being blown. Govt. created housing bubble popped so that`s dead now T-bills returning next to nothing so everyone is intentionally herded into the last DOW corral. The perfect bubble.
The money is flowing from Ben Bernanke. Banks are funneling their QE money to equities and exotic instruments, inflating stocks and stabilizing housing. Ben’s play money isn’t being loaned and it isn’t being made available to the 99% (so prices aren’t going up).
The question is how and when the bubble will burst. I don’t think anyone knows because this has never been done before.