Quote:
Originally Posted by Saratoga_Mike
A) Maybe some of the upside was frenzied illogical buying? We rarely heard any complaints when CTAs and algos were buying.
More importantly, you correctly explained the weakness in the market by citing China tensions and the Fed* (main culprits, in my opinion). Why are those concerns illogical? Monetary policy trumps fiscal policy all day long.
*I'd expand your statement to include all the major central banks. Look at them collectively and you will see reverse QE underway for the first time....well ever. The outcome is unknowable. Sweden** suffered a financial crisis in the early 90s, expanded their balance sheet and then contracted it without disaster, but the expansion was a much more modest % of GDP vs the current situation.
**one of the templates for BB's QE
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I have no respect for the Federal Reserve whatsoever.
My specific point against fear and illogical selling holds.
What are the alternative assets other than US stocks to buy?
