Alex Trias

Friday Roundup: Commodities, Emerging Markets

How to explain Friday?
(1) Stock market is forward looking, has already discounted high unemployment and sees brighter days ahead that the rest of us mortals cannot see.
(2) US Macroeconomics have become irrelevant to US equities prices because US companies are basically all multinationals.
(3) As with every bubble, this one is widely acknowledged, but investors are happy to buy as long as they think a greater fool is out there, and they can hit the sell button fast enough when the end comes.
(4) Markets are above 65 day exponential moving average, so traders buy. Period, simple as one-two-three.
(5) Central banks are pumping liquidity and telling their client banks to manipulatively bid up asset prices in the hopes of averting deflationary depression.
(6) Buy the rumor, sell the news has now turned into sell the rumor, buy the news.
(7) Maybe central banks are pumping Zoloft and Welbutrin into the water supply? Hey, come to think of it, I'm feeling pretty chipper... maybe I'll go buy some stocks.
(8) Some combination of (1) through (7).