Tag Archive for bank liquidity

Was This Weeks Mega-Run Up in Stocks For Real???

Reasons it was real:

1. Stocks are relatively less expensive than say bonds and possibly gold
2. Don’t fight the Fed
3. Christmas Rallies have historical precedent

Reasons it was BS:

1. This was a FED driven pump which will be dumped
2. The debt to GDP ratios are still insane and unsustainable
3. Political ineptitude and corruption are at all time highs
4. Stocks are expensive based on Shiller PE ratios
5. Too much hype surrounds the technology boom (Though it is obvious and real that their is a boom…)

The future will tell…

the markets are still below resistance so I would have to be skeptical here and overweight things like cash, gold, silver, etc…