We just want to make a quick comment because we have some new readers. Each point begins with a very quick summery (in bold letters) of what we’ll say in the “body” of that bullet point. We still like to use bold letters in other parts of the text to emphasize a point, but we just want to make sure new readers know why what we say after the first paragraph can sound a bit repetitive…..Thank you.
THE WEEKLY TOP 10
Table of Contents:
1) There’s no question that the last 2 QE programs have helped the stock market rally strongly.
2) When QE creates the “building up of leverage”…less QE creates the “unwinding of leverage.”
3) Stagflation is becoming more and more evident every week.
4) Suddenly, the outlook for earnings is not quite as strong as it has been for most of this year.
5) It’s not just the airline stocks, the railroads and trucker have been weak lately as well.
6) The CRB commodity index is close to breaking a key resistance level.
7) Declines of 4% do not create “great buying opportunities.”
8) U.S….China….Taiwan…….The situation continues to get more complicated.
9) Remembering 9/11……So many heroes.
10) Summary of our current stance.
1) The ECB announced last week that they are going to begin to taper back on their bond buying program by the end of the year…and we got more evidence that the Fed is VERY likely to start tapering on their own massive bond buying program before the end of the year as well (even if they don’t announce it in September)….We can argue whether this will have a negative impact on the markets or not, but one cannot argue that the Fed’s last two QE programs have helped the market rally strongly since September ...