IT'S LIQUIDITY NOT FUNDAMENTALS THAT IS DRIVING THIS MARKET...
THE FED HAS PRINTED SO MUCH MONEY FOR WALL STREET AND THE SPECULATIVE COMMUNITY...THAT THE DOW RALLY CAN GO ON INDEFINITELY...
THE EXCESS CASH WILL START TO IMPACT COMMODITIES...INDEED IT ALREADY HAS...BUT, THE MAIN INFLATION WILL BE IN STOCK PRICES...
BERNANKE HAS NO CHOICE BUT TO ACCEPT THE HIGHER INFLATION AND THE WEAKER DOLLAR AS INEVITABLE... BECAUSE THE CHINA DEFICIT IS EXACTLY LIKE THE GERMAN "REPARATIONS" BURDEN AFTER 1919... EXACTLY!
I WOULD NOT EVEN VENTURE A GUESS WHEN THE MARKET WILL STOP RISING IN THE COMING HYPERINFLATION...
AND IF THE MARKET DOES HAVE A RARE DOWN DAY...IT WILL START RIGHT UP AGAIN...UNTIL ALL OF THE FED HYPER-LIQUIDITY IS IN THE MARKETS... WELCOME TO WIEMAR GERMANY 1923!
I HAVE SUGGESTED THAT THE DOW COULD GO TO 18,000 THIS YEAR...THAT MAY ACTUALLY BE TOO LOW...
OF COURSE GOLD AND OIL WILL SOAR TOO...AND GASOLINE WILL BE OVER $4 BY THE 4TH OF JULY...
THIS IS A START OF THE INEVITABLE HYPER-INFLATION THAT WE HAVE ALL BEEN PREDICTING FOR YEARS...
THE FED IS REALLY BEING CARRYED ALONG BY EVENTS NOW...IT'S NOT MAKING POLICY ANYMORE...
THE FED IS JUST PRINTING MONEY LIKE MAD.
AND TRYING TO KEEP UP WITH THE MARKETS AND THE ECONOMY IN GENERAL...
WHEN THE RALLY STOPS...STOCKS WILL CRASH UNLIKE ANYTHING WE HAVE EVER SEEN BEFORE...IT WILL MAKE 1929 LOOK LIKE SUNDAY IN THE PARK WITH ALAN...
THE MIGHTY COLLAPSE IN STOCKS...WILL BE SIGNALED BY A SUDDEN WEAKNESS IN THE BOND MARKET...THAT WILL BE THE FIRST SIGN THAT THE END IS NEAR...
ALSO IF GOLD EVER GOES UP $50 IN ONE DAY...WE COULD BE NEARING THE FINAL BLOW-OFF TOP IN STOCKS...
THE UNDERLYING NUMBERS WILL TELL YOU ALL YOU NEED TO KNOW...NOT THE MAJOR AVERAGES...
THE MAJOR AVERAGES WILL BE A BIZARRE SIDE SHOW TO THE SMART INVESTOR...
AFTER THE BLOW OFF TOP...LATER THIS YEAR...
THE COLLAPSE...
THE DELUGE.
IT WILL BE INTERESTING TO SEE HOW THE FED HANDLES THE SITUATION...
