Excellent Insights on Current Stock Market

mshan242700

"First of all, as we enter the holiday season, you normally tend to see volumes dry up. And volumes throughout the fall actually have been quite low. When you have low volume trade, the price tends to move higher. It's just a dynamic of having, there are more natural buyers of equities than there are sellers. The second piece is, you know, there's a single trade out there right now and it is the short U.S. dollar trade. If that continues to play itself out here and we continue to see weakness in the U.S. dollar, you will see higher equity prices. Then finally, most of this talk about money on the side lines, we think is really a little bit of fabrication. Most of the institutional money managers that we know and talk to are fully invested and the last leg of somebody coming into this market is going to be the retail investor, of which we would caution them at these levels, equities are quite pricey."

"Remember that there's two kinds of inflation. One is M3 or monetary types of inflation and that is being anticipated by the market and that's reflected in things like upticks in TIPs, prices and in the price of gold. The other is more consumer related or demand related inflation and that's more reflected in the CPI number and that would be a positive certainly in the Fed's play book to allow them to take their foot off the gas pedal a little bit and begin to think about what their exit strategy is going to be in terms of cleaning up the massive amounts of liquidity that we've seen enter into the market over the last 18 months."

http://www.pbs.org/nbr/site/onair/transcripts/lincoln_ellis_of_the_lind_group_091117/

nooshinjohn

yet another dirtbag... Reported