Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (115384)	6/14/2012 2:13:04 PM
From: Road Walker	Read Replies (1) \| Respond to of 149317

True, but Fed manipulation, especially programs like QE and Operation Twist have a highly inflationary impact on stocks. That makes them much more volatile and prone to large drops. Either way, high volatility means high risk. High risk means that the risk-adjusted value of stocks... Except the stock market is not very volatile. Eventually, the Fed will take away the punch bowl. When they do, there will be an adjustment. They always do and there always is. But stocks are doing well because companies are VERY profitable and balance sheets are VERY strong.