To and if anyone out there in cyber-land is paying attention-which is frankly doubtful- I believe the primary driver of this rally is liquidity, created by the Fed not through interest rate manipulation but through expansion of the money supply. It is my belief that this is a disastrous and cowardly policy in the longer term, and it restricts the Fed's options vis a vis interest rate cuts if the economy does start tanking. Even though Gentle Ben Bernake has no problem with a weakening dollar (more stealth economic stimulus), I believe that at the end of this primrose path is a bond market meltdown and a currency meltdown. Of course the Fed doesn't want to go there, but want if at some point they discover that the market is bigger and stronger than they are? What if they can't stop it?
The good thing about expanding the money supply is that it is possible to have inflationary policies without "infecting" the core CPI data (which IMO is so statistically manipulated to be considered quasi-fraudulent anyway). This is my opinion, and it is not univerally shared.
Anyway, that said, I see bullish setups everywhere. The oil complex is doing just wonderfully; I see good little pullbacks in GSF, PXP, SWN...on and on. BNI is coming in nicely. Even GOOG - a stock I despise, partly because I hate overvalued overhyped stocks- looks like it could be buyable soon.
Plus the weaker sectors that I'm shorting might catch a bid soon as well. I don't mind; they were hedges.
So I guess I just buy stocks here. Big Brother wants them to go up. I can't see myself loving Big Brother any more though.
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