Ms. Park was a guest on BNN with Michael Kane this morning, Sept 27, at 8:35 am est. A link to the interview is available here on the BNN web site.
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Ms. Park was a guest on BNN with Michael Kane this morning, Sept 27, at 8:35 am est. A link to the interview is available here on the BNN web site.
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CNBC (the infinitely more credible European edition) has run a stunning interview with Cazenove technical strategist Robin Griffiths in which the banker discusses such taboo items as the Plunge Protection Team's intervention in the market for the month of September in a last ditch effort to keep stocks from tumbling following the horrendous August performance. First Griffiths dissects POMO: “One of the reasons [for the surge] is POMO: what happens is the Fed buys Treasurys off the banks, the banks put the money into the market…That amount of money turns the algorithms up, then all the algo trading hits the market. Real life investment managers are not doing this buying. They know that equities are for losers.” And the stunner: “The S&P is being effectively goosed up by the Plunge Protection Team – they can keep doing this for a little bit longer… But according to me the April high will not break…as…all of those Keynesian stimuli did not work.” As for bonds: “There is an old saying, don't buy the Fed – yields will go down. Even now you should be buying bonds and not equities. The bubbles never burst when wiseheads in the media tell you it's a bubble that's gonna burst, they burst when they've given up on that and tell you this time it's different.”
I would take this with a pinch of salt, but…….
Anyway, that 1150 upper trend line on the S/P 500 acts like a very strong ceiling, and I'm going after the downside, but focusing on October or early November as a game changer.
We have to face first the 3. quarter earnings season after all, but after that all bets are off.
Good interview and very informative about the realities of the financial world.
Like the hair!
jb
Danielle
Your final comments in the interview makes the case for owning Gold. Ireland, Greece, etc still loom out there. Central banks are no longer selling their gold and China, India etc are buying what ever is available. Mine out put is dropping and money is being printed. You need to take another look at the fundamentals of owning gold. Listen to Don Coxes last weekly broadcast.
Looking at gold's historical return since the 1800's, I can't wait for gold to show up on some magazine covers.
Sooner the better!