huh, describes my current setup atm!
What I'm seeing is that market pricing patterns for the past few years have been more often than not a slow rise over a matter of weeks punctuated by in a matter of days or hours --this changes trading rules that worked so much better in past decades into rules can that no longer be depended on. SAJ & I were talking about it and his view is that this is typical of what he called an 'unstable market'.
Seems to me that getting back into the kinds of returns we had before '08 means tailoring market timing and stock screening to fit Obamanomics.
this QE induced smoke and mirrors propped up market
We're hearing that a lot but we're not hearing what that means in actual monetary policy and stock prices. Like what QE are we talking about --the Fed buying treasuries? The fed's alway's bought treasuries, it's what they do. In fact, the fed held a bigger share of the T-bill market during the Reagan years than now. Inflation's far more tame now than those days too.
For me all this "QE's fault" nonsense is just a bunch of loony-left union talk intended to shift the blame away from the left-wing's war on business in time for the 2014 election.
BINGO. Fisher's quote on fiscal policy nails it (although he ignored the regulatory impact).
That would be a nifty graph and visual eye candy to easily and quickly rebut the “QE’s fault” argument.
Inflation's far more tame now than those days too.
There will be no inflation until 1) there is real economic growth, 2) median income increases and 3) labor participation gets back to where it was pre Obama. Obamanomics promotes a part time work force which limits take home pay which is built an anti-inflationary measure and anti-wealth build up for the middle class. The cost of Obamacare Plans are prohibitive for anyone who makes more than 4 X poverty level (again anti-inflationary and wealth build up).
Census office survey scandal grows as inflation stats faked
http://www.freerepublic.com/focus/f-news/3138009/posts
QE in general coupled with runaway spending by our government is the full text of what I am getting at. This infusion of capital into our economy is doing nothing but postponing the inevitable. Only once in our nation's history has accumulated debt exceeded 100% of GDP. WWII. WWII however had the dynamics to trend into a powerhouse economy due to many post war competitive advantages since we were the least impacted by the war from infrastructure perspective.
Fastfoward to now. It is almost the opposite. We have become a mostly one dimensional service economy, with no prospects to compete on a global level. You speak that inflation is tame, but what happens when the Bond and lending rates go to 5, 7, 10%? The implosion will be severe, and many in country hurt by it.
I respect your opinion, but in this case we may have to just agree to disagree.