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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: Chip McVickar who wrote (50140)5/13/2013 3:28:43 PM
From: GROUND ZERO™  Read Replies (1) | Respond to of 219180
 
You could be very right, I'm just supposing from how it appears to me, I'm certainly not an economist...

So, you think stocks will go much higher from here this year? TIA

GZ



To: Chip McVickar who wrote (50140)5/13/2013 3:51:57 PM
From: Kirk ©4 Recommendations  Read Replies (1) | Respond to of 219180
 
I agree with your last few posts. Sometimes it really helps to be a political moderate so we can see the forest though the political points. When debt on the Fed's balance sheet comes due, the government will sell new debt to pay it off. If the economy is better and rates are higher, then it will incrementally increase government borrowing costs. If the economy is not better, then the Fed rolls it over into new debt at whatever the going rate and it still turns over the interest gains to the treasury... IF we get massive inflation, hardly likely with billions hoping to enter the middle class via working and falling energy prices due to becoming energy self sufficient, then they can quickly squash it by dumping the debt they hold on the market to make rates soar and crush inflation.
However: The only substantive dark-clouds I find important going forward... is the continued power of the international banking - (the money lenders)..., the hedge funds and shadow trading platforms over our economies and governments of the world.
Indeed. In a nutshell the computer trading takes that article I wrote years ago " Using Asset Allocation to make money in a Flat Market" and does calculus problem of taking the limit of dt to zero or as close as possible with trades in microseconds. (ie rather than rebalance a few times a year, rebalance ever few milliseconds) I think it has sucked off quite a bit of PE that the market should have with normal supply/demand much as a leech sucks blood. I'd love to see a penny per share transaction tax added to EVERY trade that is refunded ONLY if you hold the original shares after 3 days when the trade settles. With that tax they should fund the SEC to investigate EVERY program trader to see if the programs have any algorithms to affect price, which is illegal. Let the computers go to Vegas to play each other and return the equity markets to their purpose of raising capital to help the country. IT PAINS ME that nobody in authority is smart enough to see this very obvious market manipulation and simple solution.... it is why I think most are bought and paid for.