THE MARKETS SEEM DETACHED FROM THE ECONOMY BECAUSE OF THE FED "GUARANTEE" OF LIQUIDITY IN THE FINANCIAL SYSTEM...
THE NOTION OF PUMPING IN MONEY WITHOUT LIMIT TO RESTORE A BUBBLE HAS NOT BEEN TRIED IN A MAJOR ECONOMY RECENTLY...
SO THE RESULT IS UNCERTAIN...
WHAT WE DO KNOW IS THAT STOCKS CAN RALLY ON ALMOST ANY NEWS...GOOD OR BAD...
WHAT WE DON'T KNOW IS WHAT HAPPENS TO INFLATION AND THE CURRENCY BECAUSE OF THIS...
SHORT TERM STOCKS AND OTHER ASSETS RALLY ON THE FLOOD OF NEW LIQUIDITY...FROM THE FED...
LONGER TERM?
WELL, WE DON'T "DO" LONG TERM ANYMORE...
