Posted by linkadge on November 20, 2013, at 15:01:45
In reply to Re: market crash in 3-6 months?, posted by Willful on November 19, 2013, at 10:05:54
FYI I lack the formal qualifications to make official investment advice. I studied mostly math and physics.
The recent rally is not based on economic fundamentals. The DOW has gained ~30 percent since last Nov! Company earnings have not grown at this pace. Employment rates (including the labor force participation rate) have not recovered significantly since the recession. The rally is fueled by artificially low interest rates and QE. Margin debt on the markets is very high (cheap money). The 'housing recovery' is phony. 60% of home purchases are 'all cash' - i.e. large institutions buying housing to flip.
The US government is simply reflating the exact same bubbles.
Linkadge
poster:linkadge
thread:1054541
URL: http://www.dr-bob.org/babble/social/20131110/msgs/1054674.html