"I told you he'd understand."
Posted on 02/21/2012 9:20:09 AM PST by Para-Ord.45
Wondering why the DJIA just passed 13K again?
Wonder no more: as the chart below shows it is entirely due to the nearly $7 trillion pumped by global central banks into the world stock markets just in the past 4 years.
As Sean Corrigan from Diapason notes, the aggregate global central bank balance sheet has doubled in four years, after doubling in the 5 years before that. We would add that with the entire centrally planned ponzi scheme hell bent on preserving the illusion of nominal gains, global liquidity is now fungibly sloshing from one market to another with absolutely zero resistance whatsoever. At this rate, it should double again in 3 years, then 2, and so on. Will the Dow hit 52K in 5 years in that case? Why most certainly. Just ask any remaining citizens of the Weimar Republic. They know all too well about exponential stock market rises. They also know absolutely everything about the self-delusion that comes with chasing NOMINAL numbers. Oh, and before we forget, expressed in spot gold price, the central bank aggregate tally has moved from being the equivalent of 10 billion oz of gold, to just 8 billion. Guess what is 20% underpriced.
(Excerpt) Read more at zerohedge.com ...
Does anyone notice that even though the DOW is going up, the volume is low? If things were genuinely robust, shouldn’t volume be hi as the market rose?
I was watching some panel on Fox Business last week and one of the talking heads pointed out that the general public is not in the stock market. These are basically the speculators that are running things now. So, perhaps that is why the “volume” is so low.
Another reminder to up our prepping.
One interesting (and to me somewhat scary) phenomenon is that very little of the trading now is done by actual humans; something like 90% of the trades are done by computers running highly specialized software algorithms.
The DOW reflects inflation. Go figure.
“volume” doesn’t care if you’re an individual, a mutual fund, a spectator, or a turnip.
I have to wonder if the institutional investors in the form of the Mutual funds aren’t heavily weighted in cash and aren’t buying/selling. Volume obviously is a function of trading, not owning. And yes there’s billions on the sidelines in Treasurys.
So maybe......this is a good thing. When volume explodes to the upside a bubble will begin to be created and volume will be the indicator to watch to help us all get out before another crash!
I got another Q. Why are the stock market companies doing so great and local companies are disappearing from the malls?
average share holding time is 28 SECONDS!
The high tax/regulatory environment benefits large companies over small because they can do work-arounds the smalls can't. I'm staying in the large caps until the Dems are out of power, and I may not return to smalls even then.
Financial institutions can survive off near zero loans from the Fed and other financial instruments. Also, they are a world wide category, ie rich folk in Russia, Brazil use them.
And local companies as you stated are dependent on the local economy as a whole. Really tough for them especially in Nevada and other high unemployment situations except if your in the foreclosure dude or a repo man.
I think the rise in the market is partly explained by no matter how bad it is in the US it not as bad as everywhere else.
Well, I am investing my money. That is probably it. LOL. Keep your damn gold. If there is a dumping of the dollar I want land, food and water. Gold will be worth no more than cow poop. Good try, but I am not going to keep the gold bubble going. I saw what happened in the eighties.
anyone who is a Democrat refuses to see anything but “keep government out of social security” (don’t even bother explaining it to them) These are the same idiots who think FDR was not a socialist and that Obama is not a communist.
I would not even trust this blog. (too simplistic an observation and other factors involved too)
It is like the old time “intelectuals” who pretend they smarter than everyone who push for a return to glass/stegal without consideration as to why it was bad law in the first place.
they are like bookies- no matter if the stocks go up or the stocks go down, they make money
"I told you he'd understand."
I don’t trust 99% of the garbage posted here about the markets. It’s all bovine scat. I’m still waiting for all the crashing and burning that was supposed to happen by now. In the meantime I am far better now than after the big crash. I made it all up and then some, and have more shares to boot.
Now excuse me while I flail around like a moron and jump out of a window.
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