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Aren’t we basically in a depression?
When QE3 kicks in, stocks will skyrocket. The reason: inflation of the money supply. Stocks may be worth less, but the dollars in which they are valued will fall even more, making stocks more expensive.
Not to mention precious metals and oil.
I know you guys realize what's going on, but apparently it's blinding you to what this guy is really saying.
You can argue economic fundamentals all you want, but they have absolutely no bearing whatsoever on capital markets today. Some time in the future? Absolutely. When? Who knows.
The point is, today, in the here-and-now, all that matters is Fed policy. They simply will not back away from their re-inflation attempts, which means the dollar value of any index is going to increase. (That is, real dollar value will depreciate.)
If you want to play the long game, just keep your eyes on the door. What the fed.gov does when this thing comes to an end is the real question.