TradingHelpDesk

Global Markets in Review: Share Prices Too Far Ahead of Economic Reality

I agree the prices of risky assets have gone beyond fair fundamental value. But the rally was inevitable due to the stimulus package and monetary policy. Recent confirmation from the Fed that it is to keep rates at 0.0%-0.25% for another six months will lead to another asset price bubble and a double-dip recession.

I see no real and sustainable economic activity just froth in markets and rising unemployment. The consumer, who historically contributed 2/3rds to economic activity, is not ready to replace the stimulus.

Unemployment is at 10.2% and rising. Another 7% are jobless but not on benefits. Another maybe 30 million workers are working part-time, or on less income compared to 3 years ago.

The Fed is making the same mistake as post 2001. It is confusing investor confidence, greed and speculation with real economic investment.

Elliott Wave did a great 75 page report on the issue for those with a little time on their hands!. Source: www.elliottwave.com/r....

World Stock Rally, As MSCI Index Hits 8 Month High

The rally was justified. I don't think we can judge it from March's lows as it was so oversold then.

It is the ball park of fair value now and ongoing corporate and economic data hopefully will decide the next move.

Global Markets in Review: Signs of a Bottom Embolden Investor Appetite

Wow. Quite some summary.