Someone made a thread about this a bit prematurely a few months back. There is a lot of talk about the top having been put in. I think the biggest factor is that Bernanke is no longer in charge. He was pretty good about figuring out how to position the actions of the Fed but now it seems that what he was doing has run out of it's effectiveness, not coincidentally about the time he leaves.
If the market does start down the correction slope, the SPX has a gap to fill at 1158 from late November 2011 when these coordinated Fed injections first began. I am sure not many imagine a 40% drop in the market is possible but it's not unlikely or improbable. The biotechs and the big dump in the Naz today may be the signal that ridiculous valuations are just not sustainable without more QE and less is all they are getting.
Could be a rough ride back down to fill that gap. Course there have been several times in the last couple of years that it looked like the top might be in and it wasn't.
If the market does start down the correction slope, the SPX has a gap to fill at 1158 from late November 2011 when these coordinated Fed injections first began. I am sure not many imagine a 40% drop in the market is possible but it's not unlikely or improbable. The biotechs and the big dump in the Naz today may be the signal that ridiculous valuations are just not sustainable without more QE and less is all they are getting.
Could be a rough ride back down to fill that gap. Course there have been several times in the last couple of years that it looked like the top might be in and it wasn't.
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