Pinning all hopes on Bernanke
Let’s face it, many of us are looking at the stock market these days and wondering what on earth is going on. By that I mean, how on earth that stocks keep going up and up while there are not only very little good news but plenty of bad ones!
However, I think it’s become very clear in the last couple weeks now that the amazingly yet-increasing stock market is moving becase of one condition — Bernanke, or namely the Feds.
At the moment, Bernanke has the last card — QE3. So long as he continues to dangle the QE3 carrot in front of the traders, and we know most of the stock market now is moving due to traders — especially there are less retail investors now since all the crashes.
The question is, how long will this dangling of carrot work? I don’t know but I think it won’t be pretty when it stops working. And ultimately, Bernanke is not going to use this last card until something drastic happen that bring the market lower first.
That, is my humble view… mixed in with a bit of rant. I expect and await the market to come down in the next couple months when the “carrot” loses affect and I’m afraid it probably will not be pretty. Then Bernanke will not no where to go and QE3 the crap out of the market.
I’m simply really curious as to what will happen from now until end of year.