Bernanke himself said the Dow would be at 6,000 now if it wasn't for Fed pumping. One big, dangerous, house of cards.
Finally, when a guy like Bill Gross says "equities are dead", he doesn't mean a stock market crash. He means don't count on a 6.6% rate of return any more.
“Equities aren’t dead any more than they where dead in 1929, but I believe the current bull market is based on a house of cards, namely, the Fed printing all that money and pumping into the system.”
One thing any investor can’t ignore is the fact that the income/returns are being skewed by unreported inflation. If $100 today will get me $200 in a year, but gasoline costs $15 per gallon at that point, I didn’t even beat inflation with my 100% return. I have limited knowledge of investing, but know enough about risk. What many investing professionals called “currency risk” (when investing in foreign investments) is no more dangerous than the inflation risk in domestic products.
I’d think the bond market is heading for its own problems, as mortgages become a thing of the past. People who have stopped breeding, who don’t know where they’ll be working three months down the road, see little reason to commit to a growing property tax bill in municipalities with little hope of meeting their retirees’ costs. What 25- to 30- year old American needs a house today?