With Central Banks now openly buying stocks, how can the Bull end?

bond_trad3r · Apr 26, 2013

bond_trad3r · Apr 26, 2013

It's the only way it can end or Krugman was right all along!

clacy · Apr 27, 2013

Quote from etfarb:

Nikkei or Yen?

American Junk Bonds? How do you monitor them?

I'm watching the Nikkei, Yen and the JGB. Japan has basically said they are "all in" with creating inflation by any means necessary. They have stated they will double the BOJ balance sheet in the next two years.

Their demographics are a nightmare and will IMO be the canary in the coal mine so to speak. A test run if you will for what the Fed is trying to do.

pikachu9 · Apr 27, 2013

Quote from clacy:

I'm watching the Nikkei, Yen and the JGB. Japan has basically said they are "all in" with creating inflation by any means necessary. They have stated they will double the BOJ balance sheet in the next two years.

Their demographics are a nightmare and will IMO be the canary in the coal mine so to speak. A test run if you will for what the Fed is trying to do.

Yes, we will see. They're all trying to outdo each other.

clacy · Apr 27, 2013

Quote from clacy:

I'm watching the Nikkei, Yen and the JGB. Japan has basically said they are "all in" with creating inflation by any means necessary. They have stated they will double the BOJ balance sheet in the next two years.

Their demographics are a nightmare and will IMO be the canary in the coal mine so to speak. A test run if you will for what the Fed is trying to do.

Yes US junk bonds although there is no guarantee that junk will lead the market down. Frankly there is so much bond money chasing yields by going into junk bonds that they may continue to go up for some time. But junk bonds behave a lot more like stocks than most bonds.

You can track them with numerous mutual funds or ETF's such as HYG or JNK.

Ash1972 · Apr 27, 2013

A bubble is a bubble. If it looks like a duck etc. There is now universal exuberance: almost all skeptics have thrown the towel in, the ones that remain are laughing stocks, Bernanke is a genius, grannies want to buy into shares, fund manager sentiment now at all time highs, new world records for highest buildings and art prices repeatedly being set. It is absolutely insane. This against a background of real world economic collapse.

Seriously guys, what ELSE do you want to hear?

Where else could this POSSIBLY go? I don't know when - nobody does - but to be long the market now is not very clever.

For those who say "I just trade the direction, and it's going up", well, four years in the same direction means pretty much everyone has REALISED it's going up. Think about that. Were you "trading the direction" back in 2009?

QuantWizard · Apr 27, 2013

Quote from Ash1972:

A bubble is a bubble. If it looks like a duck etc. There is now universal exuberance: almost all skeptics have thrown the towel in, the ones that remain are laughing stocks, Bernanke is a genius, grannies want to buy into shares, fund manager sentiment now at all time highs, new world records for highest buildings and art prices repeatedly being set. It is absolutely insane. This against a background of real world economic collapse.

Seriously guys, what ELSE do you want to hear?

Where else could this POSSIBLY go? I don't know when - nobody does - but to be long the market now is not very clever.

For those who say "I just trade the direction, and it's going up", well, four years in the same direction means pretty much everyone has REALISED it's going up. Think about that. Were you "trading the direction" back in 2009?

That's the reason why I only trade the direction for the day, I've realised trying to forecast for longer periods is a task for fortune tellers...

sellindexvol66 · Apr 27, 2013

Quote from Ash1972:

A bubble is a bubble. If it looks like a duck etc. There is now universal exuberance: almost all skeptics have thrown the towel in, the ones that remain are laughing stocks, Bernanke is a genius, grannies want to buy into shares, fund manager sentiment now at all time highs, new world records for highest buildings and art prices repeatedly being set. It is absolutely insane. This against a background of real world economic collapse.

Seriously guys, what ELSE do you want to hear?

Where else could this POSSIBLY go? I don't know when - nobody does - but to be long the market now is not very clever.

For those who say "I just trade the direction, and it's going up", well, four years in the same direction means pretty much everyone has REALISED it's going up. Think about that. Were you "trading the direction" back in 2009?

countless ridiculous threads on why why why market just goes up...has anyone ever considered just possibly the market was so oversold in 2008/2009? and the complaining, has it made you guys any money?

RCG Trader · Apr 27, 2013

Quote from Tsing Tao:

http://www.bloomberg.com/news/2013-...n-equities-as-low-rates-kill-bond-yields.html

Central banks, guardians of the worldâs $11 trillion in foreign-exchange reserves, are buying stocks in record amounts as falling bond yields push even risk- averse investors toward equities.

(more after the jump)

------------------

I guess there's no more worry about stocks falling when central banks are just printing and buying.

Too big to fail, Tsing.

QuantWizard · Apr 27, 2013

Quote from Tsing Tao:

http://www.bloomberg.com/news/2013-...n-equities-as-low-rates-kill-bond-yields.html

Central banks, guardians of the worldâs $11 trillion in foreign-exchange reserves, are buying stocks in record amounts as falling bond yields push even risk- averse investors toward equities.

(more after the jump)

------------------

I guess there's no more worry about stocks falling when central banks are just printing and buying.

Incredibly dangerous assumption. Or as someone said: it will vontinue go up - until it doesn't!