Why Hasn't The Markets Crashed?
Alot of people out there seem to think the market was going to crash this year in 2013?
Because of THIS GUY!
Now we at the end of 2013 and not only has the market NOT CRASHED, we hit new highs in the last several weeks and seem to be holding.
So...... Why Hasn't The Markets Crashed?
In my own opinion, it's pretty simple. The predicament the US faces right now they are setting many extra ordinary policies against an economy that is still very damaged.
The employment data coming out of the US is still pretty bad, and if it stays that way definatly won't see any tapering on the market, and the FEDERAL RESERVE have confirmed this numerous times. Particularly with Janet Yellen taking over the FED RESERVE early next year as her reputation is seen as more dovish.
Equity prices right now are in a bubble, I will be the first to admit that! However what traders out there are failing to realize is that Quantitative Easing is like liquid VIAGRA holding up the markets right now. Its like the rocket fuel that is not running out sending up equities and other asset classes and I think it is a fantastic representation of what is really going... WHICH IS : When Q.E. Stops there is going to be a much bigger catastrophe in the markets....yes! Bigger than the one we had back in 2008.
But for now, there is not reason to panic and get scared, as there are no signs this massive liquid injections into the markets by the fed is going to end anytime soon. One day they WILL have to, but for now they will continue to soldier one with their plans.
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