Look at those makets go!
Nasdaq 4,960 – just 40 points to 5,000 after popping up from 4,600 at the beginning of the month. That will be almost 10{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} in a month if we pop 5,000 – no wonder no one wants to buy a home or put money in the bank when the stock market spits out 10{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} monthly gains.
This is, Janet will tell you, perfectly normal folks – stock markets always go up at 100{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} annual rates in economes with no inflation, don't they? There's nothing wrong with this picture. Don't worry about where all this money is coming from if the GDP is essentially flat – it's delivered by money fairies and it will never, ever, EVER stop because there is no downside to pumping newly created money into the markets to enrich the investing class – none at all….
JUST IN CASE this turns out to be an unsustainable scam that blows up in people's faces – we do have some hedges in our Short-Term Portfolio and we'll be reviewing those in this afternoon's Live Trading Webinar (1pm EST), so tune in for that. As I said yesterday, the gains in our bullish, Long-Term Portfolio have gotten so ridiculous that we should cash them out but who wants to cash out when we (the investor class) are getting all this FREE MONEY?
It's not just Yellen and our Fed, of course. In fact, in the developed World, our Central Bank is one of the only ones that HASN'T made a surprise easing move this year already. A lot of people are expecting a nice surprise from Yellen as she addresses Congress today but Congress is getting nervous that perhaps $5,000,000,000,000.00 is a bit too much risk on the Fed's balance sheet already.
After all – if the Fed ends up taking a loss, it becomes a negative on our Treasury's balance sheet and then our National Budget gets thrown out of whack as the taxpayers get the bill for all the FREE MONEY the Fed has been handing out to the Top 1{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6}. If that happens near an election, it may not be good for the Republican majority. Other than that,
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