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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (1035817)	10/30/2017 10:58:57 AM
From: Rarebird	1 Recommendation Recommended By Behind Blue Eyes Read Replies (2) \| Respond to of 1573857

<<Almost the entire amount the PE expansion since 2009 has been due to ongoing QE and the liquidity that has provided.>> PE has nothing to do with the stock market, especially when we are dealing with companies that are revolutionizing the way we live. Do I need to explain to you how just about every millenial subscribes to NFLX and has no interest whatsoever in AT&T, Time Warner, Charter, etc. I could go on and on. The PE of NFLX is huge because it's a revolutionary company. I can give you the same rationale for AMZN, MSFT, GOOGL, AAPL and FB. And the market agrees with me. <<So if you are trusting charts to justify a bull market, then you are potentially fighting the Fed or you are trusting the Fed lied about implementing QT, which may be true, but we'll find out in the very short term either way.>> Markets move in accordance with earnings growth and interest rate spreads. I don't need to hear from the Fed or from their balance sheet what I can gather quicker and easier from charts. The charts say the Fed is still very friendly and earnings will be very strong. When the charts show me warning signs, I'll adjust. You are the one fighting the trend somewhat, not me.

To: RetiredNow who wrote (1035817)	10/30/2017 11:07:26 AM
From: zzpat	1 Recommendation Recommended By SeachRE Read Replies (1) \| Respond to of 1573857

QE wasn't real money put into the economy and we know this because inflation didn't soar as the "money supply" soared. It's not real money. QE was a series of banking transactions used by the Fed to help banks recapitalize after they nearly collapsed. QT, in theory, should be a series of banking transaction also and have no negative effect on securities. It remains a great unknown as to why it hasn't happened yet. Do you see a negative from QE (inflation etc.)? I realize some will say the market is a bubble because of QE but it's not like there were any other choices. A recession cannot happen for a very long time so interest rates have to remain low matter what the cost (even inflation). The Fed failed to deal with derivatives and asked Congress to not regulate them....a fatal mistake that still needs to be fixed. They need to fix what they broke but they also need a Congress to do it. Therein lies the problem. Without new laws, the Fed is forced to keep the economy on steroids.

To: RetiredNow who wrote (1035817)	10/30/2017 11:11:08 AM
From: Rarebird	Read Replies (1) \| Respond to of 1573857

This is not the stock market of 1997-1998, where we both invested in MO and came out ahead big time as the Clinton Administration was trying to destroy Big Tobacco. Investing in MO back then was a lot riskier than investing in AMZN or GOOGL today. The Clinton Administration went for the kill and without the support of some Republican senators, like Enzi and Nichols, MO wouldn't be around today. AMZN and GOOGL are bigger cash cows than MO ever was and what they have done to revolutionize our society for the better makes MO inconsequential.