How in the world is the DJ up so high???
Wait, don’t answer that...
Fed is printing gobs of cash to buy treasuries from the primary dealers. Dealers are taking said cash and dumping it into gold, commodities, equities and ramping up the price. That is TEXTBOOK inflation: too much cash (debasement) causing the inevitable ramp in prices. At the current rate of return in the markets, any fund manager worth his salt has to pile into it in order the keep their returns on pace with the S&P. And bond investors are doubly inspired to move money OUT of bonds (where returns are paltry) and INTO the market, where returns are growing. It feeds on itself. So to recap:
Monetization of government debt is blowing a new bubble in the markets. How long it can last is anyone's guess. If the dollar continues to get crushed, don't expect this to end anytime soon. When it does end, it will be violent, and it will be, for all intents and purposes, historic.