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

Quote from dealmaker:

It has been going on for a while, thus it can continue longer than we think.


Of course it can but in the end we all know where this leads to, its never different, remember the only way they know how "grow" an economy is through the creation of asset bubbles, and here we are again doing the same exact thing that tore this economy apart just a few short years ago! This financial crisis is not over, its just beginning. You just cant see it because of all the smoke and mirrors!
 
Quote from bond_trad3r:

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One day, dow will drop 1000, 2000, 3000, 4000 -- all the way down until we hit 30% down circuit breakers and close for the day. The Fed will add trillions but the game will finally be over.


That is going to happen, of course no one has a clue when it will occur, but it will, and the thing is why would anyone be surprised if this were to occur, no one should be shaking their heads or in complete disbelief when it does happen. Its going to be quite a painting when it does unfold!
 
Quote from JaiSreeram:

All bull markets will have to come to an end, the question is just when and how. At some point the DOW will probably be 10k again, and at some point it might even be 20k. We don’t know – with the Fed pumping in a lot of liquidity, it would not surprise me if we kept going higher though.


I wouldnt be surprised if the dow got to 20,000 and lost half its value to 10,000...

There is ZERO reason to get into this market, you will be able to buy the SPX under 1000 again that is certain. Of course it doesnt look like that today, but it doesnt take much to see a market drop 30-50% in a few short months!
 
Quote from TraderSystem:

I agree the liquidity won’t be sustainable forever… Eventually the Fed will have to pull out of the markets at which point in time we’ll get a real test of the economy


The economy you see today is an artificial economy. Sad that no one understands this, but its true. This economy isnt real...and guess what Chinas economy isnt real along with all the other economies out there, this will all be known in the years to come when you see documentaries and books written about this, this is going to end worse than 2007!
 
Quote from S2007S:

The economy you see today is an artificial economy. Sad that no one understands this, but its true. This economy isnt real...and guess what Chinas economy isnt real along with all the other economies out there, this will all be known in the years to come when you see documentaries and books written about this, this is going to end worse than 2007!


Yes and when it does, there will be no markets to trade, either. They're all in. This is the last hurrah. Enjoy it while it lasts...and root for it to do so.
 
Quote from tortoise:

Yes and when it does, there will be no markets to trade, either. They're all in. This is the last hurrah. Enjoy it while it lasts...and root for it to do so.


They are all in, every single one of them, this is a global market and once the fall starts its going to be a gigantic fall, of course you will only believe it when it finally happens, no one is going to come out now and say its going to happen when every market around the globe is up hundreds of percent in the last few years! I mean how much more of a run can the SPX have, how much more greed can you possibly squeeze out of the markets, is 130%+ not a good return...just remember today will be the 6th month in a row for gains in all major averages!
 
wrong
we're nearing the tipping point

BoJ went all in
Austerity is wrong
Krugman is right
Bernanke is genius
money printing doesn't matter
complacency is everywhere

we will start to see big moves like in Japan bonds recently or gold last week frequently and soon everyday

central banks can't control everything, imbalances will continue to grow by the day and given their track record volatility will explode from one asset class to another

stock might be immune for sometime but who cares
gold+3% silver +4% today

We near that tipping pt yet? Its been over a year mate. :D
 
We near that tipping pt yet? Its been over a year mate. :D

what exactly you mean?
Japan stocks down double digit for the year and move most days in 2% range with 3-4% moves happening regularly

Russell volatility usually above 20

not enough?
 
what exactly you mean?
Japan stocks down double digit for the year and move most days in 2% range with 3-4% moves happening regularly

Russell volatility usually above 20

not enough?

no it's not enough. this is a ponzi scheme with a cruel twist. unlimited money. it's win/win/win if you own assets.
 
To the original question, I don't know how long it can go, but it's going to end badly when it does.

It just doesn't pass the smell test that you can print and QE all you want with no ramifications.
But there ARE ramifications. They've been manageable so far.

There is almost always left out of these woe is me discussions on ET the possibility that the Fed knows more about managing monetary policy in a complex world economy then we do. Is it possible they know better then we how to extract us from a financial crisis with minimal net damage? Naw, they are a bunch of ignoramuses, right?
 
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