I don't know how long they can continue to prop this market up, but politics aside, I have to admire their efforts. Somehow "restoring investor confidence" and "signs of economic recovery" have been closely tied to "preserving our national security", and those phrases continue to glibly roll off the tongues of the talking heads with drum beat regularity. I gotta hand it to TeamShrub - they are well focused, determined, and incredibly masterful at managing public opinion and expectations. Who knows how much actual control they can exert over real economics, which are dismal at best, on a global scale, but that may be a moot point in terms of keeping the US market high enough to win the election. Just keep adding liquidity, continue to ease the interest rate, tax rate, and regulatory environments, and keep the real estate bubble intact and everything will be alright. Not that I wouldn't love to bet against them, but as Dana Carvey would say "Naaht gonna do it, wouldn't be prudent", lol. From a trading point of view I have to willing to go with the flow, whichever way it may be.
BTW Covered YHOO @ 32.76, still holding MSFT from 27.5, looking for 26.6 there |
