Seeking Alpha

Stocks return to about pre-Bernanke levels, the S&P 500 +0.6%. The Chairman made no clear...

Stocks return to about pre-Bernanke levels, the S&P 500 +0.6%. The Chairman made no clear promise for more asset purchases, but he still believes in the palliative economic effects of QE, and appears to think the economy needs another round. 10-year Treasury yields fall 3 bps to 1.60%.
From other sites
Comments (6)
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    Bernanke and the PPT buying..along w/short covering...this "market" I mean casino is a joke
    31 Aug 2012, 10:48 AM Reply Like
  • Ray - Kitchener
    , contributor
    Comments (74) | Send Message
     
    A joke indeed. Free market? What a load of BS! Bring back the pink sheets and let the market fall to true valuation.
    31 Aug 2012, 10:56 AM Reply Like
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    Ben and Co. make sure the market never goes down.. One day, the 2008 -2009 market decline will look tame..Artificial pricing will be the cause
    31 Aug 2012, 11:07 AM Reply Like
  • Roman Chuyan, CFA
    , contributor
    Comments (176) | Send Message
     
    There is still plenty of fear out there, as evidenced by the comments. Granted, asset valuations are somewhat higher due to the excess liquidity/ stimuli provided by the Fed, compared to what valuations otherwise would be - the assets include bonds (low rates), real estate, commodities, and yes, stocks. Unless the Fed sharply withdraws that liquidity, the valuations will stay at these levels.

     

    Let us look at what matters for stocks: factors in Valuation, Economic, and Market categories - we have a total of 22 factors in our PAR Model, so a very high-level summary. Valuation is very positive (stocks are cheap relative to earnings, and to book values). Economic factors are net-positive. Market factors are net-negative, including the effect of oil price, for example. Overall, our PAR Model forecasts a positive 6-month return for the S&P 500 of 4.3%.

     

    Details at parmodel.com
    Also, see our earlier articles here on seekingalpha.com, where we forecast the market based on the PAR Model, in real time.
    31 Aug 2012, 11:34 AM Reply Like
  • Ben Bernankes friend
    , contributor
    Comments (473) | Send Message
     
    We need a Bernake ETF
    31 Aug 2012, 02:18 PM Reply Like
  • hecky
    , contributor
    Comments (89) | Send Message
     
    He will engage in more stimulus? Where will he take rates to? Is he going to somehow force the banks to lend? Give worthy people mortgages? Money for small business?
    1 Sep 2012, 01:06 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs