March 23, 2010
UNCLE SUGAR AND A NEW STOCK BUBBLE
You know things are overbought when there’s a struggle to explain this advance. Still up on Yahoo/Finance at 4PM is: “Stocks Rally After Homes Sales Data Top Expectations”. They only met expectations and only because of seasonal adjustments. The only explanation for today’s action comes from Fed Governor Lacker who restated the Fed refrain—“interest rates would remain low for an extended period.” And Janet Yellen echoed that stating “record low rates needed to rev up recovery”. So that’s the green light to party on!
The headline for DJIA is 11K is within sight and that’s the window dressing Main Street needs to see. Retail investors are still withdrawing money from stock funds and more interested in bonds. Since many believe they’re always wrong a switch back to stocks at this time may be a confirmation....READ MORE!
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