Markets: S&P at 3000

The US markets and the global indices are at an all time high.. The reason?  Investor euphoria due to the following:

1.  The US economic data shows some improving signs of the economy – mainly in housing, employment and corporate earnings (mostly decent data but no one cares to question why the US GDP is not improving despite the “all round improvement” in the economy)

2. The Chinese economy has not shown any “real” weakness so far.. (for the doubting Thomases who question the China data, let me tell you – even the US data is suspect)

3. All the problems in the Eurozone have been resolved (laugh out loud here). The ECB which so far addressed the problems ONLY through its INACTION has finally acted – by cutting the interest rate. Is that not a confirmation that things are NOT rosy in the Zone? Who cares anyways? Now that the ECB (which stood pat all this time) has joined all the other Central Banks which are working overtime to print money & devalue their respective currencies (Fed, SNB, BoJ and possibly RBA and RBNZ), investors think they are on the path to glory..

4. The US dollar is up and Gold prices are down and this of late has been feeding more frenzy into the stocks (and people believe that the so called “money in the sidelines” is supposed to be flowing into the stocks non-stop for possibly the next twenty years or so)

5. After the Apple/iPhone led rally over the last few years, we now have the next technological invention – the Google Glass, ready for launch. It should bring the whole world to our door-steps and should solve all our problems including poverty in third world countries – as long as you don’t complain about privacy violation and eye strains. Another good reason to buy all the stocks, not just Google at 900!!

Since all the problems in the world seem to have been resolved one way or the other in the last four months, and since all the Central Bankers are thinking alike and seem to be in cahoots, we should keep buying the stocks without worrying about anything.. Yes, let us take the markets to new highs everyday and make sure the S&P crosses the 3000 level in the next two months. Go bulls!

p.s:  There were some rumors circulating on Friday (after the market close) that the Fed will be announcing a “withdrawal” of stimulus soon. The bears who create these rumors are really pathetic! Who cares about the Fed any more, as long as the ECB, SNB and BoJ are there to support us and lead the globe into hyper-inflation?

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About venkatcrystalball

Retired entrepreneur, currently active in forex, futures and options trading
This entry was posted in forex, Markets and tagged , , , , , , , , , , , . Bookmark the permalink.

2 Responses to Markets: S&P at 3000

  1. Concerned guy says:

    Are you short buddy? Sounds like you might be fighting the tape.

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