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Politics : President Barack Obama

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To: RetiredNow who wrote (115352)6/14/2012 1:26:59 PM
From: Road Walker  Read Replies (2) of 149317
 
You can see it in part by the increased correlation across all stocks. Most sectors seem to move in tandem now. The more highly correlated they are, the more you know the markets are moving not based on pricing mechanisms of the underlying stocks, but on external manipulation or shocks.

That may be true about what is happening on a particular day, but as to general index movements then the predictive value stands. And it doesn't matter if it's "fed manipulation".... the fed is manipulating the economy at all times. It doesn't make it less real.
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