Posted on 11/06/2015 11:05:02 AM PST by SkyPilot
The double-digit stock-market rebound after a bruising summer has put European shares back into positive territory for the year, but sentiment around the central-bank-fueled rally remains fragile.
Weak trading volumes, a so-far disappointing earnings season and a focus on reliable dividend payouts rather than blockbuster growth have all contributed to the view that investors are being sucked into a market updraft rather than enthusiastically betting on a cyclical upturn.
Even with European shares getting a fresh lift from a weaker euro on Friday - after U.S. data smashed expectations and fueled bets on tighter U.S. rate policy in contrast with the European Central Bank's dovish stance - growth hopes remain fairly muted.
"We can observe that the market continued to be really driven by what is going on with the central banks. If we just look at the fundamentals of the economy it's very difficult to be very optimistic about equities," Jérôme Schupp, Head of Research at SYZ Asset Management, said.
"We had a very strong month of October after two weak months. I don't expect this positive trend to continue."
There are a few reasons to be fearful. On the investor side, European hedge funds have actually been reducing exposure to stocks while the market has rallied, according to strategists at Morgan Stanley.
This is in contrast to what is happening in the United States, they suggest, adding that the exposure data usually tracks equity performance relatively closely.
Volumes have also been weak. While August's falls were partly attributed to low volumes, October saw even less trade.
The corporate landscape is mixed at best. Third-quarter earnings are expected to decline 4.3 percent from 2014, and 44 percent of companies on the STOXX 600 <.STOXX> that have reported results have beaten expectations. Typically, 49 percent of firms beat expectations.
(Excerpt) Read more at news.yahoo.com ...
Strange is not the word. Manipulation is the word.
The world's economies are in Depression. Inventories, sales, Real unemployment, startups, exports, and every other indicator tell us this fact. Yet, the insane markets and the money gamblers sell us lies.
They are propping up the body, as in Weekend at Bernie's.
A 5,000 Dow is not within the realm of impossibility.
Doesn’t Goldman-Sachs run the world?
In previous years we would be calling it QE3 or 4 or...or 10 or... whatever. That’s where the new money goes.
Which came first? The futures which cover $100 stocks for about $5 or the stock market? Glass Siegall removal allows for all kinds of manipulation.
Goldman-Sachs, George Soros, the UN, the Fed, the IMF, the EU, Francis, Barack Hussein Obama, and ABCCNNCNBCNBCCBS are the Devil's puppets on a string.
The defenders will shout that QE ended. The Fed simply shifted QE into ZIRP. The manipulation and lies continue unabated.
That act only allowed more gambling, and at a much wider scale.
Sorry, I meant its removal.
It’s not hard to figure out: All that Quantitative Easing worked by “buying mass quantities” of Stock.” After billions of dollars in Stock purchases the government owns enough “stock” to simply trade with itself and keep the number of “trades” reported anywhere they want.
My mutual funds are still down thousands. Every time I see some newsreader happily announcing a big gain in the Dow, I want to spit on the TV.
Everything in Washington is political. The Fed is no exception. It serves its masters through manipulation and lies.
People who buy over valued stocks in the phony Fedmarket do so at their own peril.
I know a retired full Colonel (very smart man) that went to work on Capital Hill, DC.
He said 95% of Congressmen and women are guilty of insider trading. Not even to a small degree, but massive guilt and breech of the law.
And unfrotunately, when it all comes crashing down, everyone will suffer.
Including everyone's IRA, 401K, pension, Social Security, and TSP.
Get ready for your worthless Treasury annuities in return for their stealing all your savings. That is GOING to happen, guaranteed.
The Fed claims that it wants to smooth out business cycles but what it is really doing is smoothing out the election path for Democrats through manipulation and deceit. Yellen is a very liberal Democrat but the media never reports that.
Mark my word, if a Republican gets elected president the Fed will tighten the screws until the economy slides into recession. The Fed has distorted the markets so bad that fundamentals no longer matter. Its a rigged market whose sole purpose is to make Democrats look like they are good at managing the economy.
If you have retirement investments, now is a good time to reduce your risk exposure. At this point return OF your capital is more important than return ON your capital.
The only difference between businesses that benefited under Hitler's Fascism today and the money laundering of the Fed is..........well, there isn't a moral difference.
There a many who are deceived. They still think themselves as "noble" human beings are exploiting the system because they falsely believe themselves to be "creators." Most of them are simply suckers off the Fed teat, and love money more than God.
Thank you for speaking the truth Starboard.
I am going to send you a private message if it is OK.
The Fed has clearly been manipulating the market, and probably in ways that involve direct purchases of stock indexes. I am not alone in believing this and its a reason why the Fed refuses to be audited. I also think the Fed is far more political (to the left) than is generally assumed. Even its façade as a “private” entity is a joke.
Over a seven year period the Fed has juiced the market to the point where corporate fundamentals no longer matter. But they succeeded in artificially levitating the market.
A side effect of their policies is that a prolonged period of cheap money creates conditions for economic inefficiencies, bubbles, and moral hazards from politicians who want to spend with abandon.
In short, the Fed is an enabler that has created its own mandate. We are already paying a price for this recklessness and unaccountability.
The stock and bond markets are both very risky right now.
I give it a few years at max, and a few months at minimum. If we see a crisis, warp up the time exponentially.
The Rapture will happen between now and the Fall of 2017. See you in the clouds SkyPilot ...
Get ready for a market crash of epic proportions. Your retirements savings will be cut by half or more. Watch the .gov “ come to the rescue” by offering worthless T-Bill exchanged for you savings 2 to 1.
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