Cetainly energy stocks should outperform most other sectors
the next few years until supply catches up to demand. The
liquidity that I refer to is the daily "coupon passes" that the fed makes in order to keep the money flowing from the banks to the brokers, mm's and hedge funds. He would have no reason to do this if the mutual funds had the cash to deploy but they do not as the recent mf money flow shows
outflows the last two months.So instead of letting the markets raech their true valuations, he creates the much talked about moral hazard of risky "investing" by
providing them the fiat monopoly money. Printing money as if we are Germany's Weimar Republic during a world war will cost this country dearly in the next few years. The public
realizes the true inflation that has beset us the last decade. The government can phony up as many of the bls reports as they like, the bottomline is the cost of living has skyrocketed and the gov't could care less about 80% of it's populace. Food, energy, healthcare, insurance, water,
every tax known to man, etc. have at least doubled in the last five years. But there's no inflation says the man;
we are indeed in the midst of the "misinformation highway".
Employment numbers will get worse as there is a two month warning in force for all companies. As tax revenues decline, so does the market. Stock market gains have historically averaged 9-11% since inception. The reversion to the mean has just started.Her's my prediction, money markets outperform the next three years just like they have the last three.
Later, |
