So after another round of BTFD, we are right back at the highs in the Naz, S&P and DJIA and a good day away from a high on the RUT.
Two weeks ago the world was ending because the S&P had actually sold off 60 points or so. Really? 60 points when the index is at 1600? The doomsayers are saying when the stuff hits the fan we are going to be looking at S&P 600....not 1600 but 6.0.0.
So the media, the talking heads, the 'experts' start singing the old song and dance "ok this time it's on we're going to ZERO!!!!" whenever the major indices actually sell off for say....3 days out of 4, and then guess what, the buyers come in and take it to higher highs.
This is a strange world in which we live....Big Brother is runnin' the printing presses 24/7, keeping most every asset artificially inflated. In 2000 it was tech/internet stocks.....in 2007 it was housing prices and the national real estate market....these days they have so many balls in the air the margin of error is getting increasingly small and when things go awry, not just one ball is gonna hit the floor, it is going to be a cacophony of popping bubbles hitting the floor with dead weight. Of course this could be months or possibly even a year or two away but eventually this charade is going to end and end badly.
Labels: commentary, djia, economy, motivation, nasdaq, SPX, thesis