QE3 Rally: get excited at your peril

“In the fourth quarter of this year we could head towards the fiscal cliff, have a country coming to the ESM and China slowing, you want to get excited, go ahead but you could get crushed,” says David Bloom, global head of foreign exchange strategy at HSBC. Here is a direct link.

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6 Responses to QE3 Rally: get excited at your peril

  1. michael says:

    Breaking a cardinal rule, “never try to catch a falling knife”, I had been dabbling with a small hedge to balance my energy and precious metals holdings. Luckily I was able to remember my number one cardinal rule…..if it is not working get out and ask why later. I covered the hedge. Still holding energy and PM’s. Thanks Ben….luv ya!

    Elite’s get$40 Billion/month until the cows come home…..consumer’s get inflated costs and reduced purchasing power. This will not end well for the unwashed. It may take a lot longer than thought but the eventual outcome is pretty clear.

    Dow 36000? Possible but then so is $200 oil and $5000 gold. How about $10 for a loaf of bread and all with a $U that is becoming more and more worthless.

    Got $CAD ??

  2. John C says:

    Trying to put a value on the market right now is futile IMO. The markets have become detached from economic reality. At some point, they will reconnect. The question is, under what circumstances will they reconnect? Will they reconnect in a deep recession with stocks dropping, or will they reconnect during an economic expansion which could see the markets drive even higher from the combined effects of currency devaluation and higher earnings? From my limited vantage point, it seems the risks are very high, but the outcome may surprise. If Ben can reflate housing in the US, the head and shoulders in the S&P could become pine trees on a mountainside.

  3. Harry says:

    Do not fight the FED. All the charts in the world do not matter when the FED has its foot to the floor. Sit back and enjoy the ride. When Bernanke is fired sell!

  4. dazzo says:

    I would like to preface my remarks by saying that I don’t own any equities presently and don’t plan on buying some anytime soon, because I just don’t have faith/trust in the financial system anymore. Nevertheless, posts like these on the blogosphere are starting to give me “anticipation fatigue” It seems like we’ve endlessly heard since May 2009 about how the market was going to roll over and crash (or some facsimile thereof). Yet the madness seems to continue unabated. Just this week David Rosenberg was quoted as saying that he doesn’t believe there is any correlation between the stock market and the real economy anymore. If that is the case, and I think he’s pretty much spot on, then all the historical and technical analysis and the pretty charts we see on blogs is about as useful as reading tea leaves. Many folks, including the nice lady who runs this blog, are waiting for the “big reset” so that some sense of normalcy will return, but it’s starting to feel to me a lot like “Waiting for Godot”.
    On one had it sounds great to presently have an investment strategy to preserve capital and this is what I have done since late 2008 and this has given me ~3% annual return with minimal risk. Yet when I go the grocery store and see that the 2kg jar of peanut butter that a year and a half ago sold for $6.99 now sells for $10.99 I don’t get a warm and fuzzy feeling about my long term investment outlook.
    Any one care to share their thoughts?

  5. michael says:

    It is really all about deception and diversion. As does an illusionist a good thief always creates a diversion to distract the victim.
    In the past it has always been pretty easy, not so of late with social media and smartphones.
    The ruling elites are have a harder time controlling the masses now. The diversions have to be stronger and perhaps globally coordinated.
    I think we are beginning to see that play out.
    Japan/China….Israel/Iran….Lybia/Lybia…Syria/Syria….Greece/Greece et al.
    The illusion may just work with a little help from the Bernankendope.
    I am sure the shills are busy on the phones to their shellshocked M and P’s with talk of ships sailing and missing out.
    Even dyed in the wool uber bears are starting to crack under the strain of angry clients and redemptions.
    The markets, they are never wrong, just the punters. Always.

  6. Robert C says:

    As a Peanut Butter eater I stopped buying it, locally it went up to $12.99 from $7.99.
    Even the sales prices for 2 kg were a laughable $9.99.

    Just like I do with investing I took my money elsewhere. If they want to charge high stratospheric prices, I will find something else to replace it. I started using more jam. Though recently the grocery stores realized the price was too high and dropped it to $9.99, and their latest sale price was $7.99. I bought a couple at that sale price but I will not buy in even at the new regular price.

    Reminds me of stock prices are far to high right now, I have been selling lately and building a bigger cash position waiting for the next correction. It will come. I will just preserve my capital. Just like Peanut Butter buy only when its reasonable. Otherwise I will keep the cash for myself.

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