How can the US stock indexes fall? with POMO

[Jeffp]

Quote from Maverick74:

Riddle me this batman. Why is it that our markets are actually under performing other markets around the world? In some cases demonstrably so. If the name of the game is to borrow and buy risk. Why are we doing so poorly relative to other markets? Want numbers? Fine...

%

Looks to me like if you want to be long risk assets via the carry trade, the US is not the place you want to be.

yep thats may point...Why hold on to the incredibly shrinking US dollar......

Why in vest in the old hag US economy with decaying infrastructure, aging baby boomers and absent manufacturing base?

When you can send that $, while its still worth something, overseas to those fresh nubile emerging economies with strong, cheap, young work force, factories...etc?

Whose gunna get more play...more growth...resultant inflation?

And yes even political unrest risk! That is actually and opportunity as well .

 

[S2007S]

Quote from Claudius:

The Fed is buying corporate debt. Somebody is selling them the debt and getting cash in return.
What they do with the cash is up to them. It would appear that they are using it to buy equities and commodities.

Look at this chart. It shows the Baltic Exchange Dry Index against a Commodity research Bureau index. The Baltic Exchange Dry Index provides "an assessment of the price of moving the major raw materials by sea". It's currently back to the levels seen in the immediate aftermath of the GFC when international trade collapsed. Meanwhile commodity prices continue to soar and have surpassed the pre GFC levels.
It's pretty clear that the current run up in prices is almost entirely speculative and not demand driven.

Thank you for that chart that clearly points out that the run in commodities is being done through speculation, of course no one is going to believe that until well after the fact and commodities prices start to collapse.

 

[S2007S]

By the way BUBBLE ben bernanke himself said that he wants higher stock prices, that's the reason for the fed intervention, the asset bubble maker himself said those words. If you don't believe it look it up. Anyone thinking this market is a healthy bull market think twice...it's all being created through BUBBLE bens easy money policies, but you can keep ignoring it until one day the markets collapse again and your sitting there thinking how could this possibly happen!!!