Markets were looking lame last week and were set to open up lame this week until word got out about a Bernanke speech where he said he would take more action if needed.
Today’s bottom line – Bernanke hinted at money printing and the stock market lapdogs licked it up and pushed stocks up wildly. This is a momentum investor’s dream market.
The one note of interest – past hints of “quantitative easing” (still in my opinion the best worst term to make average people think that central bankers are doing something smart instead of just printing money) have pushed up bond prices. This time bonds fell. Either they need the real deal – and not just hints or threats of printing – or bonds have finally run out of gas.
At the time of this writing, I or my clients own the following investments mentioned in this column: NONE
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